Thursday, October 25, 2007

NTT DoCoMo Revenue Declines 2.4% in 1H07, Reorganization Announced

For the six month period ended 30-Sept.-2007, NTT DoCoMo reported revenue of 2.325 billion Yen, down 2.4% from the same period last year, and operating income of 408.5 million Yen, down 21% compared to the previous year.

During the first half of the year, NTT DoCoMo introduced a number of discount plans. The company also cited an accounting change in the way it recognizes revenue under 2-year subscription deals for the drop in revenue.

NTT DoCoMo was serving 52.94 million subscribers (FOMA + mova) as of 30-Sept-2007, an increase of 320,000 since March. The number of FOMA users(3G) reached 40.04 million, up 4.5 million since March, and now representing in excess of 75% of the subscriber base. The number of handsets (FOMA + mova) sold in the period was 12.8 million units.

NTT DoCoMO currently has about 39,000 outdoor base stations, up by 3,300 since March. The number of facilities with indoor base stations is 12,100, up by 1,700 since March.

Separately, NTT DoCoMo announced plans to reorganize its group structure by integrating its eight wholly-owned regional subsidiaries into one nationwide entity. The eight regional subsidiaries were set up in 1993, at a time when the mobile telephony sector was experiencing phenomenal growth, for the purpose of rapidly developing and deploying local networks.

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