Group 1 - The article discusses the uncertainty in international cooperation in the space sector due to the "America First" policy under the Trump administration, highlighting Musk's threat to cut off Starlink services to Ukraine [1][2] - Japan and the EU are set to collaborate on building a large-scale satellite network, aiming to launch multiple small communication satellites to reduce dependence on American companies like SpaceX [1][2] - The technology of deploying interconnected small satellites, known as "satellite constellations," is positioned as crucial for supporting digital transformation (DX) [1] Group 2 - The EU plans to construct a satellite constellation with over 290 satellites, while Japan aims to launch more than five satellites in the early 2030s, indicating a significant gap with the US and China [2] - The article mentions the potential issue of space debris due to the increasing number of satellites and discusses the possibility of Japan and the EU collaborating on this challenge [2] - The agreement includes the establishment of a "Defense Industry Dialogue" to strengthen supply chains and explore future collaboration in defense equipment development [2] Group 3 - The article notes that EU Commission President von der Leyen aims to discuss the advancement of a free trade area led by Japan and the EU [3] - Von der Leyen advocates for the creation of new trade rules based on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) [4] - The draft outcome document emphasizes the importance of adhering to international law to promote peace and prosperity in the Indo-Pacific region [4]

Core Viewpoint - The article emphasizes the growth potential of Japanese telecom operators in emerging B2B businesses and international expansion, particularly focusing on NTT's strategies and performance in these areas [1][2][3]. Group 1: Emerging Business Strategies - Japanese telecom operators, including NTT, KDDI, and Softbank, are increasingly investing in B2B services, cloud computing, and data centers, with NTT leading in international business expansion [2][3]. - NTT has established NTT DATA to manage its emerging business, which includes system integration, cloud services, and global data center services [2][3]. - NTT DATA has expanded internationally through acquisitions, including the purchase of Verio in 2000 and Dell's IT services division in 2016, and operates over 150 data centers globally with a total load exceeding 1,400 MW [2][3]. Group 2: Traditional Business and Regulatory Environment - The traditional telecom business in Japan faces significant regulatory pressures, leading to a decline in mobile ARPU, which has been decreasing since 2021 due to government calls for lower pricing [3][30]. - Japanese telecom operators are diversifying into value-added services, including digital content, lifestyle services, and financial services, to stabilize revenue amid declining ARPU [3][38]. - The regulatory environment encourages fair competition and restricts excessive pricing and subsidies, impacting the operators' pricing strategies [30][35]. Group 3: Financial Performance and Growth - NTT's revenue from global solutions, primarily B2B services, has shown a CAGR of 9% from FY20 to FY23, while traditional communication revenue has only grown at 1% [16][45]. - The overall revenue growth for Japanese telecom operators has been steady, with NTT and KDDI achieving CAGRs of 2.0% and 4.0% respectively from FY10 to FY23 [45][47]. - NTT's capital expenditure is shifting towards emerging businesses, with plans to invest approximately 12 trillion yen from FY23 to FY27, focusing on digital transformation, AI, and data centers [50][53].