DoCoMo warns of lower profits in 2006/07

28 Apr 2006

Japan’s leading mobile operator by subscribers NTT DoCoMo reported a 6.2% rise in profit for its fiscal full year ending 31 March 2006, thanks to steady take-up for its high speed network FOMA, but warned that profits will fall in the coming year as competition in the local market intensifies. The cellco forecasts that operating profit for 2006/07 will be JPY810 billion (USD7.09 billion), lower than the JPY832.6 billion figure reported this year. Like its rivals, DoCoMo has for a long time enjoyed steady subscriber growth, low churn rates and rising ARPUs, however, this is all set to change when new competition enters the market in the autumn as a result of the government’s decision to license more operators and introduce mobile number portability.