Feeds

DoCoMo scales down 3G target as income slumps

Customers stay away in droves

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

ComputerWire: IT Industry Intelligence

NTT DoCoMo Inc expects to have only 320,000 subscribers for its 3G services by the end of its current financial year, and has abandoned its original optimistic forecasts that it would have 1,380,000 users by that date.

The downgrading of targets by the Tokyo, Japan-based mobile carrier will add to the alarm of its counterparts in Europe, which are delaying their roll-outs of 3G technology because of fears that the initial returns will not justify the huge investment.

For DoCoMo the humiliation is even worse because while its 3G launch has had a shaky start, its closest rival KDDI Corp, which opted for Qualcomm Inc's rival CDMA2000 technology, is about to reveal figures showing a strong appetite for 3G technology.

DoCoMo had already prepared the market for poor figures by revealing that it planned to write off JPY 573bn ($4.7bn) on overseas assets such as AT&T Wireless and Hutchison 3G and KPN Mobile NV in Europe.

In the first half to September 30, net income was JPY 4.17bn ($34.2m), down from income of JPY 89.2bn ($732.1m) on revenue up 1.9% at JPY 2.38 trillion ($19.5bn). For the second half, the company said it is looking for net income of JPY 182bn ($1.4bn) down from the forecast it issued in May of JPY 511bn ($4.2bn).

But while executives in Europe and the US tend not to regard a market downturn as a reason to cut their own income, DoCoMo president Keiji Tachikawa said that he and other top executives will take 20% salary cuts in the second half of the year.

© ComputerWire

Secure remote control for conventional and virtual desktops

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.