NTT Docomo registered declines in profit and its mobile business in fiscal Q2 (ending 30 September), but highlighted a year-on-year drop in mobile service revenue moderated as subscribers migrated to new rate plans.

Along with its results, the operator unveiled plans to accelerate the rollout of 5G base stations in the second half of fiscal 2025, targeting a threefold increase compared with H1. This is expected to continue into fiscal 2026.

On its earnings call Docomo CEO Yoshiaki Maeda said competitors have stepped up promotional spending, prompting it to push expenses higher than previously planned.

He added it will take more time and additional spending to regain share. “Competition has become too intense and there are segments that have become inefficient.”

Net profit in the July to September period dropped 15 per cent year-on-year to JPY164.9 billion ($1.1 billion), with the decline credited in part to higher sales promotion expenses. Operating revenue increased 1.7 per cent JPY1.5 trillion.

Mobile service revenue fell 1.6 per cent to JPY611.9 billion, with ARPU mostly stable at JPY3,960. Handset sales slipped 3.4 per cent to JPY179.3 billion.

The operator added nearly 9 million 5G subscribers from a year ago to take the total to 40.4 million at end-September.

While it said “competition intensified more than ever”, its overall mobile user base increased 1.9 per cent to 91.9 million, aided by promotions.

Smart Life sales grew 7.4 per cent to JPY323.8 billion; enterprise revenue rose 8.8 per cent to JPY117.7 billion.

Capex in the first six months of fiscal 2025 increased 38.1 per cent to JPY355.5 billion.

Meanwhile, NTT Inc unveiled plans to set up NTT Mobility in December.

The unit will be a dedicated autonomous driving company consolidating the expertise and technologies developed across the group. Focus areas include deploying nationwide and standardised operations and developing infrastructure adapted to the domestic traffic environment.