Recession drives down DoCoMo net

Telecom Asia Staff
29 Apr 2009

NTT DoCoMo\'s net income fell 3.9% during the year ending March 31 as the operator grappled with increased competition and the economic crisis.

The company earned 471.87 billion yen ($4.89 billion) on revenue of 4.48 trillion yen. Revenue fell by 263.8 billion yen in what DoCoMo said reflected its new discount programs.

The Japanese market leader added 1.21 million mobile subscribers during the year. Handset sales fell 5.61 million units to 20.1 million.

Mobile ARPU fell 10.2% to 5,710 yen - voice ARPU declined 20%, while data ARPU grew 8.2%.

DoCoMo warned it expected ARPU to decline further, but believes cost-cutting will allow operating income to reach 830 billion yen this financial year.

"As the Japanese cellular phone market continues to mature, given the high penetration rate, and environments surrounding the Japanese economy get severe, the competition among carriers is expected to intensify even further in the future," the company said.

Competition had intensified in customer acquisition and had been exacerbated by the launch of new MVNOs into the market, DoCoMo said.

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