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NTT DOCOMO FACTBOOK Jan 30, 2018

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Page 1: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

NTT DOCOMO FACTBOOK Jan 30, 2018

Page 2: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

About NTT DOCOMO

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Page 3: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

NTT DOCOMO, INC. is one of the world’s leading mobile communications company with over 75 Mil

customers, as of end-Dec. 2017.

DOCOMO launched the world’s first 3G mobile service based on W-CDMA in 2001, followed by LTE service in 2010.

DOCOMO launched its “PREMIUM 4G” service in March 2015, using LTE-Advanced technology. DOCOMO’s net income in FY2017 (as of 3Q, end Dec. 2017) stood at JPY 654.3 Bln (USD 5.79 Bln) on

operating revenue of JPY 3,595.7 Bln (USD 31.82 Bln) (JPY113.00= USD1.00; Dec. 29, 2017)

HQ located at Tokyo, Japan, employees number 26,734 (consolidated, as of Mar. 2017), listed on Tokyo (9437) and New York (DCM) stock exchanges.

2006-2010 2000-2005 1991-1999

NTT Mobile Communications Planning established (Aug. 1991)

Corporate Name changed to NTT DOCOMO (Apr. 1992)

Launched “i-mode” mobile Internet service (Feb. 1999)

Commercialized world’s first WCDMA-based 3G service (Oct. 2001)

Listed on NYSE (Mar. 2002)

Launched NFC-based mobile wallet service (July. 2004)

Launched mobile credit card service (Apr. 2005)

Achieved 100% population coverage for 3G service (Dec. 2008)

Commercialized LTE service (Dec. 2010)

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2015-2020

Commercialized LTE-Advanced service (Mar. 2015)

Planning commercialization of 5G service (2020)

Page 4: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

President & CEO ・ Assumed the posts of President & CEO in June 2016 ・ Management Policy: “Ever-Improving Value”

■ Management Policy

Kazuhiro Yoshizawa was named President and CEO of NTT DOCOMO, INC. in June 2016. Concurrently, he retains his position as a Member of the Board of Directors, which he assumed in June 2011.

■ Biography

Mr. Yoshizawa was a Senior Executive Vice President, Chief Information Officer, Chief Information Security Officer, and Chief Privacy Officer, and was responsible for technology, devices and information strategy from June 2014. He became General Manager of the Structural Reform Office in July 2013, while concurrently serving as an Executive Vice President and General Manager of the Corporate Strategy and Planning Department, and was responsible for the Mobile Society Research Institute from June 2012. Mr. Yoshizawa entered NTT Public Corporation in April 1979. 4

Page 5: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Subscriber Market Share ・ Japan’s mobile phone market reached a penetration rate of 100% in 2012 and surpassed 165 Mil subscriptions in 2017.

DOCOMO au SoftBank

Source: Telecommunications Carriers Association (TCA)

■ Subscriber Share Snapshot ■ Subscriber Growth in 3G & LTE

45.6%

30.5%

23.8%

(Mil)

(FY)

(75.7Mil)

(39.5Mil)

(50.6Mil)

Subscribers as of

end-Dec. 2017

0

20

40

60

80

100

120

140

160

180

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Page 6: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

FY2014 FY2015 FY2016(Forecast)

Mobilecommunicationsservices revenues

Equipment salesrevenues

Other operatingrevenues

・ Operating revenue in FY2017 is targeted to reach JPY4,750 Bln (approx. USD42.0 Bln).

・ DOCOMO aims to expand “Smart ARPU” to achieve sustainable growth of business.

Revenues & ARPU

4,527.1

【40.0Bln】

4,584.6

【40.5Bln】 Aggregate ARPU: JPY4,720 (≒USD41.77)

Voice ARPU: JPY1,390 (≒USD12.30)

Packet ARPU: JPY2,970 (≒USD26.28)

“docomo Hikari” ARPU: JPY360 (≒USD3.18)

(Billions of yen)

【 】= USD

(USD1.00 = JPY113.00)

■ ARPU ■ Growth of Revenues

6

*

* as of Dec. 29, 2017

Aggregate ARPU = Voice ARPU + Packet ARPU + “docomo Hikari” ARPU Voice ARPU: Voice ARPU Related Revenues (basic monthly charges voice communication charges) / No. of active users Packet ARPU : Packet ARPU Related Revenues (basic monthly charges, packet communication charges) / No. of active users “docomo Hikari” ARPU : A part of other operating revenues (basic monthly charges, voice communication charges) / No. of active users In addition, the sum of Packet ARPU and “docomo Hikari” ARPU is referred to as Data ARPU.

4,750

【42.0Bln】

FY2015 FY2016 FY2017 (Forecast)

Page 7: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

FY16/1-3Q FY17/1-3Q FY17 full year(planned) 7

・ Operating income of Smart Life Business and other businesses is growing steadily.

Smart Life Business & Other Businesses

98.2

115.3

130

Up 17%

(Billions of yen) Principal services

Content/Commerce

Finance/Payment

Lifestyle

Enterprise solutions Support services for customers’ peace of mind

Smart life business

Other businesses

Page 8: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

・ Diverse range of sophisticated smartphones and tablets, enhanced with value-added features and original, innovative services from DOCOMO

Product Lineup

docomo Smartphone

8

docomo Tablet

P-smart Keitai P-01J

docomo Feature Phone

docomo Raku-Raku PHONE

Others

Wi-Fi STATION N-01J

Xperia™ XZ1 SO-01K

M Z-01K

GALAXY NOTE8 SC-01K

Disney Mobile on docomo DM-01K

AQUOS Keitai SH-01J

Raku-Raku PHONE F-02J

Raku-Raku SMART PHONE 4

F-03K

dtab d-01K

arrows Tab F-02K

Xperia™ XZ1 Compact SO-02K

AQUOS sence SH-01K

Page 9: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Total Subscriptions & Smartphone/Tablet Users

■ Mobile telecommunications services subscriptions

■ Total smartphone/tablet users

9

Smartphones sold:

13.78

(Million subs)

(Million subs)

・ Handset sales recorded a year-on-year increase.

FY16/1-3Q FY17/1-3Q

75.68 73.59

Up 3% 34.93

FY16/1-3Q FY17/1-3Q

37.47

Up 7%

Page 10: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

“docomo Hikari”

More affordable

rates

New services

DOCOMO’s mobile

services

“docomo Hikari”

One-stop service

Affordable, Easy and Convenient! docomo Hikari

・New services combining mobile and fiber ・Service launch: Mar. 1, 2015 ・“docomo Hikari” subs topped 4 million in 2017.

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■ “docomo Hikari” optical-fiber broadband subs

(Million subs)

FY16/1-3Q FY17/1-3Q

4.48

2.97

1.5-fold

Page 11: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Promotion of

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・Address social issues and invent new solutions for regional revitalization & 2020 ・Create new added value in collaboration with a wide range of external partners

No. of partners growing steadily

FY16/3Q 4Q FY17/1Q 2Q 3Q

205

394

* No. of “+d” partners: The number of partners that have jointly created new value by integrating DOCOMO’s business assets with their own assets

Announced Jul. 19, 2017

Announced Nov. 2, 2017

Page 12: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Network Expansion

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Page 13: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

・ Achieved 100% population coverage for 3G in 2008 ・ Commercialized LTE in 2010 ・ 2G services terminated on Mar. 31, 2012 after more than 99% of the total subscriber base migrated to 3G/LTE ・ Launched “PREMIUM 4G” service in March 2015, using LTE-Advanced technology

NW Coverage & Subscriber Migration

■ Subscriber Segment by NW

3G 75.7 Mil subscribers

(end-Dec. 2017)

100% population coverage for 3G

(incl. HSDPA)

DOCOMO subscribers are able to enjoy 3G, LTE, and LTE-Advanced service even on Mt. Fuji. During the official climbing season, DOCOMO prepares for boosters to respond to higher traffic expected.

[Expanding Coverage in Mountainous Areas]

Coverage survey of mountainous area (Bandai Asahi National Park)

■ Service Coverage

LTE

( Incl. communication module service subscriptions )

(36.3%) (63.7%)

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Page 14: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

LTE Network: Planned Advancements

14 ◆ The transmission speed described herein is the theoretical maximum downlink rate specified in the technical standard and the actual rate may vary depending on the propagation conditions, etc. The description “Japan’s fastest” is as of December 31, 2017. ◆ Two frequency bands of 3.5GHz and 1.7GHz are used for the provision of 788 Mbps service.

Japan’s fastest 788Mbps service expanded to

241 cities nationwide

FY16/3Q FY17/3Q

49,400

Total no. of LTE base stations:

154,300

175,100

PREMIUM 4G-enabled base stations:

95,000

Page 15: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

The World Envisaged by 5G

15 Remote medical

services

4K/8K video streaming

Autonomous driving

Agricultural ICT

High speed/ large capacity

Low latency Connection with numerous devices

・ Peak rate: Over 10 Gbps

Transmission latency in Radio Access Network (RAN): 1ms or less

No. of simultaneously connected devices: 100 times*

*: Targets compared to the 2010 level. (When compared to 2015, target system capacity is 100 times, and target no. of simultaneously connected devices is 10 times.)

・ System capacity: 1,000 times*

Smart city, smart home

AR/VR

5G

Stadium solution

Page 16: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

DOCOMO 5G Open Partner Program

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Expanding value co-creation activities with partners to cultivate new use cases for 5G

A program that allows businesses & organizations interested in 5G to experience the technology

from early on

Participation as of Jan. 25, 2018: Over 500 companies Participation in partner workshops

Provision of 5G use environment

Provision of latest 5G information From Feb. 2018

From Feb. 2018

From Apr. 2018

Page 17: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

5G Trial Events

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5G x New sports viewing style 5G x GAME VR game/viewing

5G x SPORTS AR/Multi-viewpoint demo

5G x Projection mapping

YOYOGI CANDLE 2020 Oct. - Nov. 2017

New Experience! Future Stadium Dec. 2017

5G Trial Site Dec. 2017

R&D Open House 2017 Nov. 2017

DioSta New concept cart

A glimpse of 5G services ahead of commercial launch

Page 18: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Full-Scale Development of Low Power Consumption IoT

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Low price Low power consumption (10 years operation on a single battery)

Low speed/ low data volume

LPWA network/solutions for various IoT devices rolled out from spring 2017

Cellular IoT

Cat.M / NB-IoT eDRX

Cat.1 (currently in service) LoRa®

Agriculture Industrial machines Public infrastructure

Security Vending machines

◆ Cat.M, eDRX and LoRa services are currently provided on a trial basis for verification.

Page 19: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

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Initiatives Toward Delivery of Medium-Term Targets

Page 20: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

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From “Competition” to “Co-Creation” Transition from customer acquisition competition

to the age of added value co-creation

• With the introduction of the new billing plan and “docomo Hikari” optic-fiber broadband service, DOCOMO induced a phase change in the competitive landscape, breaking away from the conventional competition focused on customer acquisition to start offering value to customers based on the length of their use of service.

• Going forward, to accommodate the diversifying needs of customers, we will undertake initiatives for “co-creation”, creating new added value in collaboration with a wide range of external partners.

• Through co-creation with partners, we will aim to generate new services and

businesses, bring more abundance to our lives, and contribute to revitalizing industries and solving various social issues.

Page 21: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

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Initiatives for Delivery of Medium-Term Targets

●iPhone release

●”docomo Hikari”

●New billing plan

●Expand service domains by adding home offerings

●Accelerate “dmarket” initiatives

Early recovery of

telecommunications business

Roll-out by DOCOMO Co-creation with partners

Recover competitiveness

Reinforce competitiveness

●Roll-out of “+d”

Value generation through

“co-creation”

●Co-creation of social values

Medium-Term Targets

Solid steps toward delivery of Medium-Term Targets

New initiatives toward delivery of Medium-Term Targets

Telecommunications business

Smart Life domain

●Promote subscription to new billing plan and “docomo Hikari”

●Encourage migration to larger data plans

●More efficient use of CAPEX

●Ongoing cost efficiency improvement

●NW speed enhancement (LTE-Advanced)

Page 22: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

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Transformation into a “Value Co-Creation Company” Through Collaboration

●”+d”

●Regional revitalization

●2020

●Loyalty point/iD linkage

●IoT

●Solution of social issues

●Point distribution ●Point card

●dmarket ●dmenu

●DCMX/iD ● Home domain ●docomo Hikari

●5G ●LTE-Advanced ●LTE ●New billing plan ●Smartphone ●iPhone

Value co-creation company

Value creation company

Smart life partner

Integrated services provider

Mobile communications

operator

Evolution of offerings

Expansion of added value

Page 23: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Global Business

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Page 24: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Global Presence

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Country City Company Name Percentage of Voting Shares

Business Description

Brazil São Paulo NTT DOCOMO Brasil Serviços de Telecomunicação Ltda.

100.0% Enterprise solutions & information gathering

Guam Tamuning DOCOMO PACIFIC, INC. 100.0% Mobile/fixed line operator

United States of America

New York NTT DOCOMO USA, Inc. 100.0% Enterprise solutions & information gathering

Palo Alto DOCOMO Innovations, Inc. 100.0% R&D

Honolulu DCM Reinsurance Company, Inc.

100.0% Reinsurance business

Redwood City

Evernote Corporation - Information storage service

Germany Munich DOCOMO Communications Laboratories Europe GmbH

100.0% R&D

United Kingdom

London DOCOMO Digital Limited 100.0% Platform business

Europe Representative Office

- Information gathering

■ Americas/Europe

Page 25: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Global Presence

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■ Asia

Country City Company Name Percentage of Voting Shares

Business Description

Bangladesh Dhaka Robi Axiata Limited 6.4% Mobile operator

China Shanghai NTT DOCOMO China Co., Ltd. 100.0% Enterprise solutions & information gathering

Beijing DOCOMO Beijing Communications Laboratories Co., Ltd.

100.0% R&D

Hong Kong - Hutchison Telephone Company Ltd.

24.1% Mobile operator

Philippines Manila PLDT Inc. 8.6% Mobile/fixed line operator

Philippines Branch - Advisory business

Page 26: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Global Presence

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■ Asia

Country City Company Name Percentage of Voting Shares

Business Description

Singapore - NTT DOCOMO ASIA Pte. Ltd. 100.0% Enterprise solutions & information gathering

South Korea Seoul KT Corporation 5.8% Mobile/fixed line operator

RSUPPORT Co., Ltd. 15.7% Remote solution business

Taiwan Taipei Far EasTone Telecommunications Co., Ltd.

4.7% Mobile operator

Thailand Bangkok Mobile Innovation Co., Ltd. 72.6% Platform business

Vietnam Hanoi VMG Media Joint Stock Company

24.5% Platform business

Page 27: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

Mobile Alliance Partners

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Alliance partner Investee

KT (Korea)

FET (Taiwan)

Smart (Philippines)

China Mobile (China)

Indosat (Indonesia) StarHub (Singapore)

VNPT (Vietnam)

True (Thailand)

HTCL (Hong Kong)

CONEXUS (DOCOMO + 8 operators)

SCFA (DOCOMO + 2 operators)

• One of the largest carrier alliances in

Asia with 9 participating companies • Business collaboration primarily in

the fields of international roaming and enterprise services

Conexus

• Business cooperation committee

with China Mobile (China) and KT (Korea)

• Cooperation in the areas of international roaming, network technologies, etc.

SCFA*

*Strategic Cooperation Framework Agreement

Page 28: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

International Roaming Services

Provision of a new service to foreign travelers in Japan in collaboration with overseas carriers and partner shops in Japan

No. of outbound roaming service areas

Voice / SMS Data

No. of countries/regions 229 219

3G 173 174

LTE 7 (VoLTE) 83

※As of Dec. 31, 2017

Outbound Roaming Inbound Roaming

Expansion of int’l roaming areas incl. LTE / VoLTE roaming

Providing coupons to travelers in Japan

Send coupons when attached to DOCOMO NW

Shopping with coupons

etc.

Travelers in Japan

Partner Shops

DOCOMO

Laox (tax free shop)

shopping malls

drug stores 29

Page 29: NTT DOCOMO Factbook · PDF fileNTT DOCOMO FACTBOOK ... Radio Access Network (RAN): 1ms or less . No. of simultaneously connected ... New billing plan LTE-Advanced

The new of today, the norm of tomorrow

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