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Feb. 5, 2007

Japan’s largest wireless carrier, NTT DoCoMo, reports a 2.4 percent drop in operating profits for the first nine months of last year.

The profit decrease was due to stiffer competition from rivals KDDI and Softbank.

From April through December 2006, NTT DoCoMo posted lower operating profits of $5.5 billion, down from $5.7 billion during the same period the previour year when share sales helped boost profits.

Overall, DoCoMo has been investing more money into advertising campaigns aimed at convincing its subscribers to sign up for its 3G services.

However, its overall success has been less than enthusiastic and the company wants to help prevent its net profits from further erosion.

DoCoMo still saw its 55 percent market share drop as KDDI and Softbank launched new price plans intended to entice DoCoMo customers into churning.

The almost endless fight over Japanese subscribers is expected to increase in March, as wireless carriers enter the peak churn season with newly available number portability at their disposal.

Japan’s financial year closes at the end of next month.

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Source: Wireless Week