Feeds

DoCoMo scales down 3G target as income slumps

Customers stay away in droves

  • alert
  • submit to reddit

Boost IT visibility and business value

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
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.