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DoCoMo announced today that they will stop accepting new applications for PHS (Personal Handyphone System) mobile phone services as of April 30, 2005. As a result of the decision, DoCoMo will post an approximately 61 billion-yen impairment loss on a consolidated basis and an approximately 21 billion-yen special loss on a non-consolidated basis. Accordingly, DoCoMo has amended its consolidated and non-consolidated financial results forecasts for the fiscal year ending March 31, 2005 (April 1, 2004 â€“ March 31, 2005), which were announced on October 29, 2004.
The PHS business was transferred to the DoCoMo group from nine NTT Personal Communications Network companies located around Japan on December 1, 1998. Thereafter, DoCoMo developed and enhanced PHS services to fit various mobile needs in the marketplace. Due to falling service charges and the steadily enhanced functionality of cellular phones, however, DoCoMo anticipates a steady decline in PHS customers, and in view of DoCoMo’s focus of its management resources on its 3G FOMAÂ® mobile phone business, the decision was made to stop accepting PHS service applications. DoCoMo will also evaluate the possibility of terminating the service altogether while monitoring future trends in PHS usage by existing customers.
Existing customers will be able to continue using PHS services, although DoCoMo plans to offer them incentives to transfer their accounts to FOMA services. The details will be announced once they are finalized.
About NTT DoCoMo
NTT DoCoMo is the world’s leading mobile communications company, serving more than 49 million customers. The company offers a wide variety of leading-edge mobile multimedia services, including i-modeÂ®, which provides e-mail and Internet access to over 43 million subscribers as the world’s most popular mobile Internet service, and FOMAÂ®, launched in 2001 as the world’s first 3G mobile service based on W-CDMA. In addition to wholly owned subsidiaries in Europe and North America, the company is expanding its global reach through strategic alliances with mobile and multimedia service providers in Asia-Pacific and Europe. NTT DoCoMo is listed on the Tokyo (9437), London (NDCM), and New York (DCM) stock exchanges. For more information, visit www.nttdocomo.com.
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