DoCoMo will seek to revitalise lacklustre sales of its FOMA service with the launch of three new handsets. From next month DoCoMo will start receiving an estimated 6m 3G handsets from NEC, Panasonic and Fujitsu in a bid to increase its 3G customer base to 10.6m. In conjunction with the new handsets, DoCoMo has earmarked Y120bn ($1.1bn) of tariff cuts during the current financial year.
In an intervew with Nikkei BP, NTT DoCoMo’s new president Masao Nakamura has said he has three major goals; increase 3G FOMA subscribers, dig out new revenue sources such as mobile e-commerce and enhance customer satisfaction. After posting its highest ever operating profit of 1, 103 billion yen in the year to March 2004, it certainly looks as if Nakamura has his work cut out for him, especially as — on the surface of it at least — KDDI au seems to have consistently knocked the socks off DoCoMo in terms of gleaning 3G subs.
After the May 7 release of NTT DoCoMo’s full-year FY 2003 financial results, Tokyo analysts, financial consultants, and investment gurus have been churning out a steady stream of opinion and forecasts. After reporting stunning net profits of Y650 bn (about US$5.71 bn), at least some analysts predict the company is on track to return to the Y1-trillion operating profit level in FY 2004, ending 31 March 2005 (have any outside Japan achieved similar?). Among the more interesting gems: 2G average revenue per user (ARPU) was Y7,470 (Y5,570 voice, Y1,900 data; data was 25% of total) in 4Q2004, while 3G ARPU was Y10,360 (Y6,960 voice, Y3,400; data was 33% of total) for the same period. Clearly, 3G rocks! But that’s not all — read on for the predictions on how new, flat-rate data pricing will affect profits in FY2004.
Digital Satellite TV provider SKY Perfect Communications and NTT DoCoMo announced that the two companies have agreed to jointly field test mobile video-clip streaming services and program-related information services by integrating the 3G FOMA and SKY PerfecTV! networks. The test is scheduled from June 15, 2004 to November 30, 2004 in Japan.
April is emerging to be a milestone month in Japan’s 3G rollout. According to the most recent Telecom Carriers Association figures. Milestone One: Japan added a million new 3G subscribers in April. Milestone Two: April’s surge also simultaneously brought the total number of 3G users here to over 17.7 million. So what you say? Well, this also meant that for the first time Japan’s 3G user base passed 20% of Japan’s 82 million mobile subscriber base, or 21.6% to be precise, as of April 30! Milestone Three: DoCoMo added an incredible 530,500 FOMA subscribers. Not only was this up 483% on the same month a year ago, it was the FIRST TIME ever that DoCoMo beat KDDI au in net 3G adds!!
NTT DoCoMo today announced the company’s consolidated financial results (NTT DoCoMo, Inc. and subsidiaries) for the fiscal year ended March 31, 2004. Operating revenues were 5,048.1 billion yen (up 5% year-on-year), operating income was 1,102.9 billion yen (up 4.4% year-on-year), income before income taxes was 1,101.1 billion yen (up 5.6% year-on-year) and net income was 650.0 billion yen (up 205.9% year-on-year).
