TOKYO NTT DoCoMo Inc. on Friday (July 30) reported more than a 13 percent drop in profits in the first quarter as Japan's largest wireless carrier spent more to attract new customers and hold on to old ones.
The unit of Nippon Telegraph & Telephone Corp. said net income for the fiscal quarter ended June 30 fell to $1.52 billion from $1.77 billion the same period a year ago. Revenues dipped 2.5 percent to $10.96 billion from $11.21 billion.
DoCoMo blamed the drop in profits on fierce competition in the saturated Japanese market, which has made it more expensive to attract and retain subscribers. DoCoMo has particularly felt the pressure from its smaller competitor KDDI Corp., which has grabbed market share with a reputation for quality service.
"While the competition in the Japanese cellular communications market is expected to become more fierce going forward, we will strive to reinforce our brand by further improving our network quality and providing tariff packages, products, services and after sales support that better suit the needs of our customers, and thereby solidify our business foundation," Massao Nakamura, president and chief executive of DoCoMo, said in a statement.