TOKYO, JAPAN, February 28, 2005 --- NTT DoCoMo, Inc. and its eight regional subsidiaries announced today that they will stop accepting new applications for PHS (Personal Handyphone System) mobile phone services as of April 30, 2005.
As a result of the decision, DoCoMo will post an approximately 61 billion-yen impairment loss on a consolidated basis and an approximately 21 billion-yen special loss on a non-consolidated basis. Accordingly, DoCoMo has amended its consolidated and non-consolidated financial results forecasts for the fiscal year ending March 31, 2005 (April 1, 2004 – March 31, 2005), which were announced on October 29, 2004.
The PHS business was transferred to the DoCoMo group from nine NTT Personal Communications Network companies located around Japan on December 1, 1998. Thereafter, DoCoMo developed and enhanced PHS services to fit various mobile needs in the marketplace. Due to falling service charges and the steadily enhanced functionality of cellular phones, however, DoCoMo anticipates a steady decline in PHS customers, and in view of DoCoMo's focus of its management resources on its 3G FOMA® mobile phone business, the decision was made to stop accepting PHS service applications. DoCoMo will also evaluate the possibility of terminating the service altogether while monitoring future trends in PHS usage by existing customers.
Existing customers will be able to continue using PHS services, although DoCoMo plans to offer them incentives to transfer their accounts to FOMA services. The details will be announced once they are finalized.
For details regarding the amended financial results forecasts for the fiscal year ending March 31, 2005, please refer to the attachment.
Amended Consolidated Financial Results Forecast
for the Fiscal Year Ending March 31, 2005
Operating Revenues | Operating Income | Income before Income Taxes | Net Income | |
Previous Forecasts (A) | 4,820,000 | 830,000 | 1,316,000 | 758,000 |
Amended Forecasts (B) | 4,820,000 | 769,000 | 1,255,000 | 722,000 |
Increase/ (Decrease) (B-A) |
— | (61,000) | (61,000) | (36,000) |
Change (%) | — | (7.3%) | (4.6%) | (4.7%) |
Results for the Fiscal Year Ended March 31, 2004 | 5,048,065 | 1,102,918 | 1,101,123 | 650,007 |
Amended Non-Consolidated Financial Results Forecast
for the Fiscal Year Ending March 31, 2005
Operating Revenues | Recurring Profit | Net Income | |
Previous Forecasts (A) | 2,577,000 | 439,000 | 523,000 |
Amended Forecasts (B) | 2,577,000 | 439,000 | 511,000 |
Increase/ (Decrease) (B-A) |
— | — | (12,000) |
Change (%) | — | — | (2.3%) |
Results for the Fiscal Year Ended March 31, 2004 | 2,633,194 | 533,544 | 333,851 |
Special Note Regarding Forward-Looking Statements
About NTT DoCoMo
NTT DoCoMo is listed on the Tokyo (9437), London (NDCM), and New York (DCM) stock exchanges. For more information, visit www.docomo.ne.jp/english.
i-mode and FOMA are trademarks or registered trademarks of
NTT DoCoMo's FOMA service is only available to subscribers in Japan.