Feeds

NTT DoCoMo claws back to black

But losing out in 3G race

  • alert
  • submit to reddit

Boost IT visibility and business value

DoCoMo has returned to profitability, but its main rival KDDI has leapt ahead in the 3G subscriber race. DoCoMo has just 330,000 subscribers compared to KDDI's 7.5 million. Also worrying are DoCoMo's low expectations for revenue growth, as increased spending on data services seems to be coming at the expense of conventional calls.

NTT DoCoMo has clawed its way back to profitability and expects net income to more than triple this year as subscribers switch to 3G services. However, Japan's largest mobile carrier continues to be outpaced by its main competitor KDDI, which has built up a far larger 3G subscriber base built on Qualcomm's CDMA2000 technology.

For the year to March 31, DoCoMo reported net income of $1.8 billion, up from a loss of $1 billion, on revenue 3.2% higher at $41.4 billion. DoCoMo, which is Asia's most valuable public company, expects net income this year to leap to $5.3 billion, though it predicts that revenue will only increase 1.9%.

It plans to boost its 3G subscriber base to 1.46 million by the end of this year from a current figure of 330,000, and president Keiji Tachikawa said this is a conservative target as it only involves an extra 100,000 subscribers a month.

Much more rapid growth has been seen at KDDI, which had 14.3 million subscribers at the end of April compared with DoCoMo's 44 million. While DoCoMo has been hampered by teething problems on its 3G network, KDDI has raced ahead with Qualcomm's technology and now boasts a 3G subscriber base of 7.5 million.

This has brought huge benefits to the company's bottom line, and in the year to March 31, net income was $493.9 million, up from income of $111.9 million on revenue that fell 1.7% to $23.9 billion. While it expects revenue to fall slightly this year, net income is expected to increase by about 24% to $609 million.

DoCoMo's business progression is worrying as revenue growth has stalled and increased expenditure on data services seem to be at the expense of spending on conventional calls. Mobile operators worldwide may be alarmed at DoCoMo's latest figures as Japan is an avidly watched market; its advanced services are thought to offer a glimpse of the future in other regions.

© datamonitor logo

Datamonitor is offering Reg readers some of its technology research FOC. Check it out here.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
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
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
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
EE network whacked by 'PDP authentication failure' blunder
Carrier is 'aware' of cockup, working on a fix NOW
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
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.