Japan’s leading telecoms operator by revenues and subscribers, Nippon Telegraph and Telephone Corp (NTT), today reported a 16.7% year-on-year fall in operating profit for its fiscal first quarter to June, as intense competition in the mobile market undermined the performance of its mobile arm NTT DoCoMo. The Japanese behemoth also blamed the drop on a weak performance at its fixed line units NTT East and NTT West which are spending heavily to entice customers to migrate to high speed fibre-to-the-home (FTTH) networks. Group operating profits for the three months to 30 June fell to JPY299.23 billion (USD1.93 billion), down from JPY359.18 billion a year earlier, as revenues dipped 1.5% to JPY2.585 trillion. On a more positive note, net income climbed 3.4% to JYP149.57 billion, thanks in part to lower corporate tax charges.
NTT is investing in FTTH in an effort to offset falling revenue from its core voice communication services. It had 6.78 million FTTH users and 3.79 million IP telephony users at the end of June. It is aiming to boost those numbers to 9.476 million and 6.274 million respectively, by the end of March 2008. ‘By expanding the subscriber base for the B-FLETS FTTH service and launching new services such as movie transmission, we aim to turn around the falling profit trend at our regional units,’ the company said.