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FOMA helped DoCoMo to strong growth

August 12, 2003

NTT DoCoMo reported a quarterly profit last month, helped by strong growth at its 3G service and solid per-user revenues, with no big overseas losses this time.

In July the company gained 124,000 new subscribers with a subscriber base of 658,700.

User growth at DoCoMo's FOMA 3G service picked up pace in the quarter and its per-user revenue rose as it accelerated the pace of network expansion and launched a series of new handsets with a longer battery life earlier this year.

FOMA's average revenue per user came to 9,610 yen per month in the quarter, up sharply from 8,030 yen in the previous quarter as frequent users started to shift to the 3G service.

DoCoMo's results follow quarterly earnings from rival, KDDI, added 584,200 new subscribers to its 3G CDMA2000 1x service in July.

"As far as generating popularity among investors is concerned, it (DoCoMo) seems to be losing out a bit to KDDI due to the popularity of KDDI's 3G service," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.

"So the key for DoCoMo to become more popular with investors is really to boost the growth rate of its 3G service."

DoCoMo's current 3G user total of 658,700 represents just 7 per cent of KDDI's.

 


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