NTT Docomo, KDDI Log Lower Operating Profits in April-Sept.

Economy

Tokyo, Nov. 5 (Jiji Press)--Major Japanese mobile carriers NTT Docomo Inc. <9437> and KDDI Corp. <9433> saw their consolidated operating profits fall in April-September from a year before, dragged down by the costs of responding to new industry rules.

NTT Docomo's operating profit dropped 11.5 pct to 540,259 million yen, after the company in June launched plans that lower communications fees by up to 40 pct and discounts on smartphone prices by up to one-third. Its sales fell 2.5 pct to 2,330,003 million yen.

KDDI logged sales growth of 4.2 pct to 2,564,457 million yen, thanks to a brisk performance in noncommunications services, such as financial and energy operations.

But its operating profit declined 1.4 pct to 553,407 million yen, due to costs for measures taken to keep clients before the introduction of the new rules in October.

On Oct. 1, the revised telecommunications business law took effect, obliging mobile phone operators to charge communications fees and handset prices separately, meaning that customers can purchase smartphones from carriers without subscribing to their respective communications services.

[Copyright The Jiji Press, Ltd.]

Jiji Press