[Company analysis] NTT Docomo, Inc. (NTTドコモ)

「NTT Docomo, Inc. (NTTドコモ)」is the largest mobile telecommunications operator in Japan that provides mobile phone and wireless communication services. It is also a subsidiary of「Nippon Telegraph and Telephone Corporation(日本電信電話)」. The number of consolidated employees is approximately 26,564.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	NTT DoCoMo, Inc.
Company name (Japanese)	NTTドコモ
Date of establishment	Wednesday, July 1, 1992
Headquarters location	〒100-6150 東京都千代田区永田町2丁目11番1号 山王パークタワー
Capital	949,679
Consolidated sales	4,840,849
Consolidated operating profit	1,013,645
Consolidated total assets	7,340,546
Consolidated capital	5,394,124
Capital adequacy ratio	73.5%
Consolidated number of employees	26,564

 

 

 

2. Summary and Features

 
In 1968,「NTT」initiated pager business, which is a first type mobile communication service. This can be said the origin of current「NTT Docomo」. After privatization of「NTT」, their mobile communication business division became separated as a independent company,「NTT Mobile Communications Planning Co., Ltd.(NTT移動通信企画株式会社)」. Then with a full scale of spin-off, they started the mobile communication service under the brand name of "NTT Docomo".

 

Today,「NTT Docomo」is known as one of the Japan's three largest news agencies, but until the feature phone era, this company has an overwhelming position in the mobile communications market. However, with the introduction of smartphone,「NTT Docomo」lose its market share and allowed their competitors a chance to grow. In particular, 「Softbank Corporation」began handling the "iPhone" for the first time in Japan, succeed in expanding its market share significantly.

 

Even "au" started to handle "iPhone" with the release of "iPhone 4". But「NTT Docomo」did not support it until that time. Due to this decision, they lose a large number subscribers since the summer of 2008. In order to overcome this, 「NTT Docomo」aggressively promoted smartphone of「Sony Corporation」and「Samsung Electronics」. But in the end, they gave up and began to handle the “iPhone” from 2013.

 

Right after this "give up", business performance of「NTT Docomo」 has recovered steadily. In 2018, they acheived 45% of market share in Japanese mobile phone market. Although the service fee and device price of「NTT Docomo」is relatively higher than other companies, they have the lowest churn rate(0.57%) among the three major telecommunications companies.

 

 

3. Major Business

 

■ Telecommunications business
Including mobile communication services,「NTT Docomo」carries out LTE (Xi) services, FOMA services, international services, terminal sales, etc.

■ Optical communication and other communication services
They provide optical communication services and satellite telephone services.

■ Smart life business
They provide content lifestyle services such as dTV, d-shopping, d-fashion, d-travel, d-healthcare and DAZN for docomo.

■ Financial and settlement services
They carry out businesses such as d-card, d-card mini, iD, and d payment fee storage agency.

■ Other business
They are also engaged in business such as corporate IoT system development, sales, maintenance outsourcing, mobile phone compensation service, and secure remote support.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		4,584,552	4,769,409	4,840,849
Consolidated operating profit		944,738	973,264	1,013,645
Consolidated total assets		7,453,074	7,748,290	7,340,546
Consolidated net assets		5,561,146	5,712,144	5,394,124
Breakdown of sales	Communication business	3,709,947	3,896,839	3,975,490
	Smart Life business	486,547	448,645	432,297
	Others	388,058	423,925	433,062