Facts & Feature of NTT Docomo

8/14/2019 Facts & Feature of NTT Docomo

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NTT DOCOMO FACTBOOKDec 2009


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About NTT DOCOMO

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HeadquartersTokyo, Japan

Employees (consolidated)22,843 (June 30, 2009)

Establishment

August 1991

Stock ListingsTokyo (9437)London (NDCM)New York (DCM)

Ryuji Yamada assumed the posts

of NTT DOCOMO INC. President

and CEO in June 2008, crowning

a distinguished 35-year career

with both DOCOMO and its parent

company, Nippon Telegraph and

Telephone Corporation (NTT).Mr. Yamada is a principal architect

of the NTT Groups strategic long-

NTT DOCOMO INC. is the world's leading mobile communications company with over 54 million customersin December 2008. Of these, 50 million subscribe to FOMA, launched as the world's first 3G mobileservice based on the W-CDMA mobile standard in 2001.

DOCOMO offers a wide variety of leading-edge mobile-multimedia services, including i-mode, the world'smost popular mobile e-mail/Internet platform, used by 48 million people.

With the addition of credit-card and other mobile-wallet functions, DOCOMOs handset has become highlyversatile tools for daily life.

DOCOMO had net income of JPY 4,719 billion (USD 4,804 million) on operating revenue of JPY 44,480

billion (USD 45,281 million) in fiscal 2008 (ended March 2009). (JPY98.23 = USD1.00; Mar. 31, 09 )

term transition from fixed voice services to IP and related

services, including mobile communications.


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4

Corporate Philosophy

With the aim of creating a new world of communications culture, we NTT DOCOMO will devote all the skills, know-

how and energy towards the establishment of more "personal communication" with our customers that contributesto their heartfelt satisfaction.

We will create a

newcommunication

culture

We will satisfy ourcustomers

We will fully utilizeindividualpotential

Concept Tree


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50.2%

28.5%

19.5%

1.8%

Subscriber Market ShareJapans mobile phone market has continued to expand even as it showed signs of maturing. At the end of 2007, total

subscriptions surpassed 100 million and the penetration rate reached approx. 80%. Down through the years,DOCOMO has consistently maintained a subscriber market share of approx. 50%.However, DOCOMO needed to make a clear break from its former business model, which had reached its limit.

SubscribersSubscribersas ofas of

End Oct.End Oct.20092009

DOCOMO

au

SoftBank

EMOBILE

Source: Telecommunications Carriers Association (TCA)

5

54% 54% 53% 52% 51.2% 50.8%53% 52% 52% 50.6%

increase of 10 millions

subscriber per year

20

40

60

80

100

(Millions of subscribers)

Growth period Mature period

New Customer Customer Retention

97/3 99/3 01/3 03/3 05/3 07/3 09/3

Total Number ofTotal Number of SubscriSubscriptionsptions

Market Overall

increase of 5 millions

subscriber per year

SubscriberSubscriber Market ShareMarket Share


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New Logo

(July 1, 2008)

New Logo

(July 1, 2008)

Integration of Regional Subsidiaries

(July 1, 2008)

Integration of Regional Subsidiaries

(July 1, 2008)

New Commitments

(April 18, 2008)

New Commitments

(April 18, 2008)

HokkaidoHokkaido

TohokuTohoku

ChuoChuo

HokurikuHokuriku

TokaiTokai

KansaiKansai

ShikokuShikoku

ChugokuChugoku

KyushuKyushuNationwide operationsunder a single entity

In fiscal 2008, DOCOMO shifted the focus of its marketing efforts to concentrate on strengthening brand

loyalty among its 54 million existing customers. Previously focused on acquiring new customers andminimizing churn, DOCOMO is now striving to extend the depth and duration of its existing customerrelationships. DOCOMO has supported this effort by renewing its commitments, introducing newcorporate branding and integrating its former regional-subsidiary structure for greater efficiency.

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Stronger Brand Loyalty

We will revamp our brand and strengthen

ties with our customers.

We will actively seek out the voices andopinions of our customers so that we cancontinue to exceed their expectations.

We will continue to drive innovation so

that we can earn the respect andadmiration of people worldwide.

We will become an organization whoseenergetic staff is capable of overcoming

all challenges in pursuit of our corporatevision.

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Networks


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Subscriber Migration to FOMA

Accelerate subscriber migration to FOMA in view of scheduled termination of mova services(March 31, 2012)

Aim to grow FOMA subscriptions to 95% of total by Mar. 31, 2010

0

10

20

30

40

50

60

07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3 09/6 09/9 10/3forecast

mova

55.80

53.0395.0%

49.0489.8%

54.6053.39

43.9582.3%

9.44

5.562.7752.94 53.94

12.90

7.49

40.0475.6%

46.4486.1%

51.2692.9%

3.93

55.19

Numbers in parentheses indicate the percentage of FOMA subscriptions to total cellular subscriptions(Million subs.)

Inclusive of Communication Module Services subscriptions

FY2007 FY2008 FY2009

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1 2 3 4 5 6 7 8

movamova

20

40

60

80

100 FOMAFOMA

8181

99

88

1010

00

HSDPAHSDPA

Principal actions taken in FY2008

HSDPA coverage expansion

No. of years after launchYear of service launch

Service launch (nationwide)

2002/4

Service launch (Chuo) 2001/10

Service launch 1993/3

Service launch 2006/8

Pop. coverage (%)

Seek higher customer satisfaction

Customer visit within 48 hours

Enhancement ofHSDPA speed

(7.2Mbps)

pop. coverage: 100%

Area quality improvementusing compact BS (booster)

(indoors)

Visiting customerwithin 48 hours

Tokyo MetropolitanExpressway

quality

improvement

Achieved 100% pop. coverage in 2 years and 4 months

after service launch

2008/07 Trial service in some areas of Kanto Koshinetsu

2008/10 Full-scale launch in Kanto Koshinetsu, Hokurikuand Kyushu

2009/01 Expanded to nationwide scale

Actions taken during customer visit:

Area quality investigation, installation of FOMA

repeater/indoor auxiliary antenna, explanation of area

quality improvement plans, etc.

Network Coverage

Implemented various measures to improve FOMA coverage and quality

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Services


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Rolesofmobilephones Advancement of ITAdvancement of IT

Transformation intoTransformation into

lifestyle infrastructurelifestyle infrastructure

Time/evolution

CommunicationCommunication

InformationInformation

accessaccess

LifeLife

assistanceassistance

BehaviorBehaviorassistanceassistance

Music

VideophoneIntldialing

Telephone

Internet access

GamingVideo

e-mail

Push-to-talk 2 in 1

ComicOne-seg TV

SecurityAuction

Osaifu-keitaie-wallet

Locating

FilteringSearch engine

Deco-mail

D

OCOMO

D

OCOMOsChallen

ge

sChallen

ge

Personalization ofPersonalization of

servicesservices

Continual evolution of mobile phones and network

DOCOMO aims to evolve mobile phone to take the role of assisting customers individual behavior. We will

take on the challenge of advancing the roles of mobile phone.

Advancement ofAdvancement ofcommunicationcommunication

Advancing the Roles of Mobile Phone

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Expansion of Packet Usage

Packet usage continued to grow due to expanded uptake to flat-rate packet access plans and enrichment of

video services.

13.40

/

15.75

19.58

13.95

/// / / / /

Topped 800,000

Total subs: Topped

Over 70%

Percentage of subs who have joinedpaid service after free trial period:

0.330.33

0.440.44

0.560.56

0.700.70

0.770.77

(Million subs.)

Pake-hodai*1 subscriptions

*1 Inclusive of Pake-hodai full and Pake-hodai double subscriptions*2 Pake-hodai subscription rate= No. of Pake-hodai subscriptions/Total FOMA i-mode subscriptions

Video content

(Million subs.)

(As of Oct. 12, 2009)

21.52

25.80

22.40

17.61

// /

forecast

FY09 Pake-hodai subscription rate target: 55(Initial target (announced 4/28/2009):47%)

/

Pake-hodai subscription rate*2

47%(As of Sep. 30, 2009)

(Announced

10/30/2009)

/

forecast

(Announced

4/28/2009)

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DCMX

One of our lifestyle applications is Osaifu-Keitai, mobile-wallet service for e-money, e-credit cards, travel tickets,membership cards, ID, door keys and more. DCMX, DOCOMOs e-credit card, has more than 10 million membersand the iD platform for e-credit cards has some 420,000 payment terminals installed.

420,000 as of September 30, 2009

430,000 as of March 31, 2010(forcast)

Guam & China

iD payment terminals installed

iD deployment overseas

Lifestyle Applications for Payments

iD

DOCOMO platform for storing e-credit cards ofany brand. Phone is merely waved over merchantterminal to complete transaction.

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DCMX

DOCOMO brand for e-credit card

0

1

2

3

4

5

6

7

8

9

10

11

Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Aug.

millions

Steady Growth in DCMX Subscriptions

2006 2007 2008 2009

10 millionDCMX subscriberson August 24, 2009

(Total subscriptions to DCMX mini, DCMX and DCMX GOLD)


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Location Information

Maps GPS navigation

Location-based Lifestyle Services

NATIVIME JAPANMap: Shobunsha Publications, Inc./

Sumitomo Electric Industries, Ltd.

By combining location information with a cartographicdatabase, subscribers can search for location-basedenterprises, such as restaurants, hotels or stores, and thennavigate to the enterprise.

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GPS-enabled Handsets

With more than 21 million people now owning a GPS-enabled DOCOMO handset, customers are increasingly

taking advantage of convenient location services. Most newer models, beginning with the 905i and 705iseries, come with a navigation system and preinstalled map application.

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21.1 million (As of June 2009)


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DOCOMO unveiled its new handset lineup which is closely attuned to the latest preferences and lifestyles of mobile

phone users.

Latest Handsets

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N-B

P-B

SH-B-B

L-B N-B

SH-B

L-B

SH-B

F-B

SH-B

F-B

L-B

N-B

F-B

F-B

P-B

SC-B

SH-B

Photo Panel 02

Digital photo frame


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Personalization

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Automatic delivery ofinformation on

your favorite restaurantsRecommendation oftime-sale information, etc.

(Planned for Nov. 2009 )

Number of i-concier subscriptions topped 2.3 million. Aim to provide personalized services at the right timing in an optimal manner through the introduction of

GPS-linkage function.

i-concier

No. of content

No. of subscriptions

0.5

1.0

1.5

// / /

1.561.56

0.930.93

0.300.30

2.0

Topped 2.30 millionTopped 2.30 million(As of Sept. 30, 2009)

2.5

2.342.34

Introduction of GPS-linkage function

Automatic reminder oflast train information

from your current location

Automatic delivery ofweather forecast, earthquake

information, etc.,of outdoor destinations

Information only available on the spot to be deliveredat the right timing(Million subs.)

(content sites)

/ / / /

191191244244

332332423423

3.903.90

/(forecast)


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Address social issues Leverage DOCOMOs strengths

Establish infrastructure fordelivering personal medical

information using mobilecommunications

Health care/medicalinformation delivery service

Remote medical support

Health carebusiness

Establish infrastructure for

information collection by combining

sensing technologies with mobilecommunications

Environmental sensing

Eco-life support(energy-saving support)

Environment/ecologybusiness

Social SupportEstablish infrastructure that enhances efficiency of information distribution in such areas as environment/ecology,

safety/security and health care/medical management and develop into commercial business to contribute to

sustainable growth of society.

Social PlatformSocial PlatformSafety/security

business

Healthcare

business

Finance/

paymentbusiness

Environment/ecologybusiness

Education

supportbusiness

Finance/paymentbusiness

Environmental support by rollingout sensing infrastructure

Medical support,Wellness support

Further diversify services andbusiness in finance and payment

fields

Promotion of mobile CRM

New convergence service inthe field of finance

Mobile remittance service

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Femto BTS

DOCOMOnetwork

Content/serviceprovider

Broadbandnetwork

Femtocell BTS

Subscriber

Registered phone

Registered phone

Stable communications environment

Provision of return-to-homeconfirmations linked with in/out of homearea information

In/out of home area alert

High-performance Femtocell BTS equipment

Convergence withhome appliances

Comfortable access to video, music orother large-capacity content

Remote control of homeappliances and equipment

FOMA base station

Installhigh-performanceFemtocell BTS in home

Realizes dedicated FOMA areafor your own home

Future plans

Introduced as Japans first home area service using Femtocell BTS in November 2009

launched in November 2009:

Converged Services

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International Business


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More services for international travelers Expanded service areas for international roaming (voice, videophone and packet data communication) Wider lineup of phones that support international roaming.

International solutions for companies One-stop enterprise solutions (mainly for companies with communication needs both in Japan and overseas). Solutions developed and delivered in collaboration with overseas subsidiaries and capital/business partners,

including members of the Conexus Mobile Alliance.

Overseas Business Deployment

New business developed with capital or business partners, mainly in the Asian Pacific region. Reinforced alliances in Asian Pacific, centered on the Conexus Mobile Alliance.

Diversified International Services

For travelers / visitors For overseas offices Mainly in Asian Pacific

Internationalphone services

Enterprisesolutions

Overseas BusinessDeployment

Capital & business partners

Preferred roaming

International roaming

Solutions for Japaneseenterprises overseas

Seamless mobile servicesthrough collaborations

Dialing from Japan

DOCOMO is steadily increasing its international service offerings, focusing on both travelers and multinationalenterprise customers, as well as the development of new business in collaboration with foreign partners.


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0

20

40

60

FY07 FY08 FY09 (forecast)

0

200

400

600

800

1,000

1,200

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

0

20

40

60

80

100

(Roaming service users: 1,000 subs.)

(% of own-handset roamers

to total roaming users)

Intl roaming users (aggregate)

% of own-handset roamers to total

International service revenues have been growing steadily in recent years and are expected to exceed 55 billion

in fiscal 2008. A wider range of compatible handsets is enabling more users to enjoy these convenient services.

International Business

International dialing/roaming revenues International roaming users

21

3333..00

1414

(Billions of yen)

21.121.1

19.919.9

27.527.5

54.154.1

47.447.4

59.059.0

Intl roaming revenues Intl dialing revenues

99

(Inclusive of inbound roaming revenues)


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India

Singapore

Japan

Mobile alliance comprising240 million customers

S. Korea

Hong Kong/Macau

Taiwan

Indonesia

Thailand

Established in April 2006 primarily to develop international roaming and corporate mobile services, the ConexusMobile Alliance has become one of Asia's biggest mobile alliances. The alliance members combined have about240 million users of mobile voice, video and data roaming on GSM, GPRS and W-CDMA networks, some includingHSDPA.

International Roaming via Conexus Partners

Vietnam

Philippines


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Investment in Mobile Operators Overseas

Since 1999, DOCOMO has been expanding its influence in the Asian Pacific by establishing equity positions incompanies that operate in important markets within the region. These investments enable DOCOMO to use itstechnical expertise and business know-how to help partners increase their corporate value.

(As of October 1, 2009)

S. Korea

Hong Kong/Macau Taiwan

Dec. 2005

2.2% ownership

Philippines

Mar. 200614% ownership(20% by NTT groupcombined)

Feb. 20014.7% ownership

Dec. 1999

24.1% ownership

Dec. 2006100% ownership

Guam & Mariana

Sept. 200830% ownership

Bangladesh

India

Mar. 200926% ownership

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DOCOMO interTouch (Dec. 2004 )

Singapore-based high-speed Internetaccess provider for hotels

DOCOMODOCOMO interTouchinterTouch (Dec. 2004 )(Dec. 2004 )

Singapore-based high-speed Internetaccess provider for hotels

MontaVista Software(Dec. 2004)

U.S. developer of Linux

software

MontaVistaMontaVista SoftwareSoftware(Dec. 2004)(Dec. 2004)

U.S. developer of Linuxsoftware

Mobile Innovation (May. 2004)

Thai fleet management serviceprovider

Mobile Innovation (May. 2004)Mobile Innovation (May. 2004)

Thai fleet management serviceprovider

Dates of investments appear in parentheses.

KTF-NTT DOCOMO Mobile

Investment (Nov. 2007)Korean venture fundtargeting mobile/ITcompanies

KTFKTF--NTT DOCOMO MobileNTT DOCOMO MobileInvestment (Nov. 2007)Investment (Nov. 2007)

Korean venture fundtargeting mobile/ITcompanies

(As of June, 2009)

Emcore Technology (Jan. 2005)

China-based company offering

location-based services

EmcoreEmcore Technology (Jan. 2005)Technology (Jan. 2005)

China-based company offering

location-based services

Gobi Fund (Dec. 2003)Gobi Fund(May.2007)Chinese venture fundtargeting media companies

Gobi Fund (Dec. 2003)Gobi Fund (Dec. 2003)Gobi FundGobi Fund(May.2007)(May.2007)Chinese venture fundtargeting media companies

DOCOMO Capital (Jul.2005)

U.S. high-tech venturecapital firm

DOCOMO Capital (Jul.DOCOMO Capital (Jul.2005)2005)

U.S. high-tech venturecapital firm

Digital Media group (Feb. 2005)

China-based company offering digital

media services

Digital Media group (Feb. 2005)Digital Media group (Feb. 2005)

China-based company offering digital

media services

Blue Ocean Wireless (Sep. 2008)

Ireland-based company offering MaritimeGSM services

Blue Ocean Wireless (Sep. 2008)Blue Ocean Wireless (Sep. 2008)

Ireland-based company offering MaritimeGSM services

Investment in Other Companies Overseas

Besides investing in mobile operators overseas, DOCOMO is also investing in a range of other companies

that have the potential for not only further growth, but also synergy with DOCOMO.

AdvertisingTechnologies

Fleet Management ServicesGlobal Mobility Support

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Global Expansion Promote actions aimed at expanding higher-layer businesses, e.g. content, platform, etc. TTSL achieves favorable growth in subscriber count, with GSM coverage being expanded on a continual basis.

Content/services

Platform

Network

Content distributed centrallyfrom DOCOMO Netherlands

to other overseas markets

Delivery of content/services through networks

of carriers in Europe, Asia, etc.

(Launched Jun. 11, 2009)

India: Provided by TTSLDistribution of JapaneseManga comics throughBouygues Telecom (France)

Present TOB for net mobile AGin progress

Further strengthen

platform for overseascontent distribution

Higher-layer businesses

MANGA MODE i-channel

UK: Launched for Japanese

nationals living in UK

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Business & Technology Cooperation Committee

(BTCC)

Board representation/employee secondment

GSM network roll-out support

Actions aimed at enhancingenterprise value of investee

Cooperation for value-added service development

New service brand for GSM(TATA DOCOMO)

GSM service launched in South India on

June 24, 2009.

i-channel service launched on

September 7,2009.

India (TTSL)


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Technologies

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Network Evolution Plan

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LTELTE (()) (Super3G)(Super3G)

HSPAHSPA (())

Downlink: 7.2/14 MbpsUplink: 5.7 Mbps

2006 2007 2008 2009 2010

Downlink: 300 MbpsUplink: 75 Mbps

Maximumdata rate

(bps)

1 G

100 M

10 M

1 M

100 K

HSDPAHSDPA(())

Downlink: 3.6/7.2 MbpsUplink: 384 Kbps

WW--CDMACDMADownlink: 384 Kbps

Uplink: 384 Kbps

4G4G(IMT(IMT--Advanced)Advanced)First in the world

to succeed in

5Gbps outdoortransmission (in 2006)

Continua

levolutionofNW

HSPA: High Speed Packet Access HSDPA: High Speed Downlink Packet Access LTE: Long Term Evolution

HSUPA (HSPA): Introduced in June 2009

LTE: Planned for introduction in Dec 2010 as one of the first adopters in the world

DOCOMO introduced its W-CDMA-based 3G service in 2001, and then eventually launched HSDPA() forhigh-speed data communication up to 7.2 Mbps.DOCOMOs 3G network is being overlain with HSPA(), and later LTE() (Super 3G), for even faster data speed andgreater data volume.DOCOMO is developing a next-generation network to smooth the migration to a 4G (IMT-Advanced) service offering

ultra high-speed communication of up to 1Gps.


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LTE(Super3G) Demonstration Experiments In July 2007, DOCOMO began laboratory experiments for LTE, an advanced version of HSDPA / HSUPA ().

The experiments recorded a downlink transmission rate of 250Mbps and uplink rate of 50Mbps in an outdoor test,in February 2008.

Achieved peak dataAchieved peak data

raterate

Delay profileDelay profile

Sent and ReceivedSent and Received

constellationconstellation

Base StationBase Station Mobile StationMobile Station

YRP DOCOMO R&D CenterYRP DOCOMO R&D Center

44

TxTx

antennasantennas

for MIMO (2 sectors)for MIMO (2 sectors)

eNodeeNode BB Core NW emulatorCore NW emulator

approx.approx.

250 Mbps250 Mbps

approx.approx. 50 Mbps50 Mbps

DownlinkDownlink

UplinkUplink

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()

HSUPA : High Speed Uplink Packet Access

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Facts & Feature of NTT Docomo