Feeds

DoCoMo writes off $4.7bn overseas

Hutchison is very cross

  • alert
  • submit to reddit

3 Big data security analytics techniques

ComputerWire: IT Industry Intelligence

A massive slide in the value of mobile carriers has forced NTT DoCoMo Inc to write JPY 573bn ($4.7bn) off the value of three of its major overseas investments. The move comes at a bad time for the Tokyo, Japan-based carrier as the costly consequences of its expansion into world markets comes at a time when it is being hammered in its home base by poor reception for its 3G service.

The biggest write-off is JPY 339bn ($2.8bn) on its 16% interest in AT&T Wireless. It paid $9.8bn for its stake in December 2000 as part of an alliance under which the two companies would share content and technology and sell each other's services in both Japan and the US.

In Europe, DoCoMo is writing off JPY 126bn ($1bn) on its 20% stake in Hutchison 3G, which this month is starting a low-profile launch of the first 3G services in the UK. The move is hardly a surprise as in August Dutch incumbent KPN NV wrote $1.2bn euros ($1.1bn) off the value of its 15% stake in the company for which it paid 1.5bn euros ($1.4bn). It planned to sell its holding for a knock-down price.

The move brought an angry response from the majority shareholder, Hong Kong conglomerate Hutchison Whampoa Ltd, which said it "disagreed with the rationale behind DoCoMo's accounting decision." It claimed that after a detailed impairment test of its 3G assets, it found there was no requirement to write down its investments in 3G licenses and services.

But Hutchison is now the subject of increasing critical appraisal in the investment community because of the degree of its exposure to 3G at a time when sentiment has turned against the technology and operators in Europe are delaying their roll-outs. Hutchison has just had to scrap a 1.5bn euro ($1.48bn) bond issue, citing a deterioration in bond market, though a reluctance by investors to back 3G ventures is thought to be a major factor.

DoCoMo's final write-off is for JPY 108bn ($893.2m) for its investment in KPN Mobile NV as part of an alliance that was designed to spread its i-mode service in Europe. As the largest mobile operator in terms of revenue, DoCoMo decided to take on a global role by investing in companies overseas, but has ended up with a huge financial headache as a result.

© ComputerWire

Combat fraud and increase customer satisfaction

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.