May 11th,2001

1
Private Sector Participation in Capacity
Building and Technical Assistance

• May 11th,2001
• NTT Communications Corporation

2
AGENDA
- Introduction of activities of NTT group -
Joint Study on Improvement of Custom's System
in the Republic of Indonesia - B2B EDI and
eMarketplaces for trade facilitation - Conclusion
3
AGENDA
- Introduction of activities of NTT group -
Joint Study on Improvement of Custom's System
in the Republic of Indonesia - B2B EDI and
eMarketplaces for trade facilitation - Conclusion
4
NTT group overview
Sales(operating revenues)97.9B Employees224,000

(as of March 31, 2000)

5
NTT GLOBAL SERVICES
Business Services built over the Platform with
reliability and security
E
????
???????????????
Business Service
??????

?

Authentication Settlement and Payment Billing

?????????(?????)

??????(?????????)
IP
???????????

?

??
IP

???????
?????????????
Directly connected to broadband IP network,
operates huge amount of IP traffic High
reliability and security

Internet
???????
IP
?
???????????
Data Center
??????


???????
The way to provide high speed IP based services
worldwide
6
Arcstar IP Backbone Service
Arcstar IP Backbone Service is a highway to/from
major ISP in the world. It provides high speed
/ low latency, high connectivity, and high
reliability backbone network
Network configuration
IX
Palo Alto, CA
UUNet
Seoul
Palo Alto, CA
San Jose, CA
DS31 OC31
Verio
OC31
4Mb/s
NY
OC31
Tokyo
San Jose, CA OC31
Shanghai
419Mb/s
1.5Mb/s
768kb/s ATM
OC3
Jersey City, NJ
Cupertino, CA
6M 768kb/s
45Mb/s
768kb/s 1Mb/s
ATM
Hong kong
4Mb/s
4.5Mb/s
1M x 2
Manila
2Mb/s
Singapore
Sydney
2Mb/s
Taipei
London, UK
256kb/s
Colombo
San Paulo
7
Worldwide presence of NTT Communications Group
China-U.S. Undersea Fiber-Optic Cable Network
(start operations at Jan.2000)
TAT-14 Cable Network (Atlantic Ocean) (plans to
start operations in fourth quarter of 2000)
Japan-U.S. Cable Network (plans to start
operations in second quarter of 2000)
Investment in NEXTEL Communications, inc.
(mobile) (since Jan. 94)
Joint Venture with Beijing Telecommunications
Administration (BNTE)(since Aug. 98)
Joint venture with Shanghai Posts
and Telecommunications Administration
(SNTE) (since Feb. 97)
Management participation in HKNet in Hong
Kong (since Jul,1999)
Investment in Teligent, Inc. (wireless local
access) (since Sept. 97)
Installation of telephone lines in Thailand
(since Nov. 92)

Management participation in Sri Lanka Telecom,
Ltd. (since Aug. 97)
Investment in PLDT in the Philippines (since
Sep. 99)
Multimedia Super Corridor Project in Malaysia
Investment in AutoWeb (April, 1999)
Installation of telephone lines in northern
Hanoi, Vietnam (since Nov. 97) 1
Investment in StarHub, the new carrier in
Singapore, beginning to operate from April,
2000 (since May 98)
Asian Multimedia Forum Established primarily by
information communications companies in the
Asia- Pacific region (since June 97)
Installation of telephone lines in central Java
(since Oct. 95)
Investment in Asia Internet Holding Co.,
Ltd.(since Aug. 97)
Partnership with Davnet(since Noc.99)
8
International Collaboration for Technical
Competency Development
?NTT Groups cooperation with Japans ODA
Dispatch of experts for technical assistance
(During 19791997, a total of 877 experts were
dispatched)
Dispatch of Japan Overseas Cooperation
Volunteers (During 19661998, a total of
434 volunteers were dispatched to 36 countries)
Acceptance of trainees (since 1955) (During
19961998, a total of 1,242 trainees from 118
countries were accepted) Excluding
trainees at the Okinawa International Center, as
indicated below.
?Computer course at the Okinawa International
Center
a training course at the Okinawa International
Center for information processing technicians,
(sponsored by JICA) 2,165 trainees from
approximately 70 countries (Since 1985)
9
AGENDA
- Introduction of activities of NTT group -
Joint Study on Improvement of Custom's System
in the Republic of Indonesia - B2B EDI and
eMarketplaces for trade facilitation - Conclusion
10
Joint Study on Improvement of Custom's System in
the Republic of Indonesia
?Objectives of the Study To contribute to system
design for CIS and CSS CISCustoms Intelligent
Database System CSSCustoms Service
System ?Period of the Study From December 3,
1997 to March 1, 1999 ?Team(Execution of the
Study) -Indonesian government (Directorate
General of Customs and Excise ) -Japanese
government (Customs and Tariff Bureau of the
Ministry of Finance) -NTT DATA -Customs
officials and local engineers
11
Expected Results
?The study is expected to contribute to (1)
Creation of efficient and accurate customs
services (2) Improvement in the quality of the
customs services provided for trading entities
and government agencies (3) Improvement of
investment environment that will lead to
increasing direct investment from abroad,
domestic industry growth, growing international
industry collaboration and trade. (4)
Creation of adequate industrial policies based on
more accurate export and import data
12
Study Execution
?Success factors (1) Team -Leadership
participation from governments -Experience and
expertise consultants who integrated NACCS
in Japan -Responsibility and knowledge transfer
participation of staff with customs expertise
and engineers with adequate
skill (2)Execution -Leadership
Commitment -Management Communication Projec
t planning
13
AGENDA
- Introduction of activities of NTT group -
Joint Study on Improvement of Custom's System
in the Republic of Indonesia - B2B EDI and
eMarketplaces for trade facilitation - Conclusion
14
Trade facilitation by networks and systems
Vision End-to-end integration of services and
systems so that any business in any place can
communicate with any business in any place at any
time. Ingredients - Construction of B-to-G
systems for trade facilitation - Construction of
global B-to-B trading networks - Linkage between
B-to-G systems and B-to-B systems through
compatible translation between B-to-G and B-to-B
systems.
15
Interoperability
Introducing a B-to-G system, it is important to
secure interoperability with its related B-to-B
systems and eMarketplaces to facilitate trade
effectively.
B to G systems
interoperability
B to B systems/networking
Seamless electronic document exchange
eMarketplaces
16
TEDI Project
TEDI is a nationwide undertaking under the
Ministry of International Trade and Industrys
fiscal 1998 supplementary budget
plan. Objectives of TEDI To reduce time and
cost incurred in trade administration and
operation by standardizing and exchanging
electronic trade documents over safe and reliable
networks. TEDI Participants Trading Cos.,
Banks, Insurance Cos., Carriers, Infrastructure
Cos.
17
Documents Flow of International Trade
Bill of Lading and other documents
Payment
Issuing Bank
Negotiating Bank
Payment
Insurance Policy
Bill of Lading and other documents
Payment
Bill of Lading and other documents
Insurance Company
Trade Contract (Purchase Order)
Buyer
Seller
Cargo
Cargo
Bill of Lading
Bill of Lading
License
License
Permission
Permission
Carrier
Export/Import Control Administration
Export/Import Control Administration
Custom Office
Custom Office
18
Present trade operations (per trade transaction)
Number of companies involved Up to 27
Number of documents involved Up to 40 kinds
Number of data entries Approximately 200
Data re-entry rate 60 70
the sourceAPEC Report on Trade Impediments 1995
19
High Level Design Concept of TEDI
Open - Electronic commerce that can accommodate
both domestic and overseas companies -
Interconnectivity with both domestic and overseas
EDI services - Open specifications and common
protocols Seamless - XML document format in
compliance with the EDIFACT and SWIFT - Seamless
electronic document exchange (in-B, B-to-B and
B-to-G) - Automatic posting and reconciliation
of documents Flexible - Workflow to satidfy the
needs of each companys internal operations -
Interface for various existing Cas.
20
Overview of TEDI Project
Repository Service Providers(RSPs)
Registration of Shipment Information Table,
Certification of Data Exchange, etc
Ministry of Justice of Japan
Ministry of International Trade and Industry of
Japan
Certificate Authorities (CAs) for TEDI
Issuance of TEDI Public Key Certificates, CRL
management, etc.
Issuance of Corporate Public Key Certificates
Overseas Network
Export and Import License
JETRAS
Application for Export and Import License
Overseas Network Connection
TEDI Network
Custom
OverseasCompanies
NACCS
Custom Clearance Declaration
Custom Clearance
Agreements for Legal Effects
Trade Documents B/L , P/L , I/V etc.
Banks
Consignors
Carriers
InsuranceCompanies
EDI
DIGITAL SIGNATURE
JETRASJapan Electronics open network Trade
control System NACCSNippon Automated Cargo
Clearance System
REPOSITORY
?Total Assumed Savings16.9B/year in Japan
21
Global Trading Web

• A business-to-business Internet trading community
• Including
• eMarketplaces
• Buyers
• Suppliers
• Business Service Providers

22
GTW Conceptual Overview

• The GTW is a global community of regional
  MarketSites, including all vertical and branded
  MarketSites
• The GTW Advisory Council provides strategic
  guidance and input into managing the GTW
• GTW.net manages inter-MarketSite content
  syndication and provides support services
• To improve efficiency and create incremental
  value to RMS partners

GTW Advisory Council
Global yellow pages
Content brokering
GTW.net
BT MarketSite
NTT MarketSite
Commerce One MarketSite.net
Optus MarketSite
DT MarketSites
MarketSite-based trading communities
SESAMi. NET

• Common business services
• Logistics
• Customs clearing
• Escrow, credit services
• Taxation

Access to trade affiliates
Branded communities e.g., Wells Fargo
Vertical communities e.g., Hotels, Healthcare
SciQuest
Other Partners
Neoforma(1)
TradeCard(1)
(1) Examples only
23
History
Q11999 Q21999 Q31999 Q41999 Q12000 Q22000 Q32000 Q42000
Japan UK Singapore Germany Australia Canada LatinAmerica Switzerland Portugal Spain Middle East Hong Kong Citibank Concert France Korea SBC Taiwan Israel Greece Italy Japan 2 Philippines Poland Singapore 2 Nordics CSC Poland 2 Russia Thailand
24

The Global Trading Web Today
Telecommunication
Global Trading Web
25
Summary
1
1
Connect once to a worldwide network of buyers,
sellers and service providers provides for the
greatest aggregation opportunity.
2
2
Open to any on-ramp and any service, from EDI to
ERP to any buying application to any selling
application provides for the greatest integration
opportunity.
3
The GTW provides the infrastructure for success
for all Marketplaces.
26
AGENDA
- Introduction of activities of NTT group -
Joint Study on Improvement of Custom's System
in the Republic of Indonesia - B2B EDI and
eMarketplaces for trade facilitation - Conclusion
27
Conclusion
(1)International collaboration - Team skill
set - Execution (2)End-to-end integration
through extensive participation of players
including governments and businesses - Global
consistency - Interoperability -
Standardization - Local sensitivity