Network planning for a public switched telephone network is essentially the same as the company's business strategy. The social environment providing the market for communications services is undergoing rapid change in Japan as it evolves from an era of one basic mainstay service-namely, plain-old telephone service-to one in which a wide range of advanced new services are, or soon will be, available and there is fierce competition to provide those services. This paper covers some of the thinking behind NTT's strategy to put in place a flexible and effectual network that fully reflects the needs and desires of customers in this fast-changing environment.