NTT DOCOMO, INC. (E04463) Stock Price

NTT Docomo is Japan's largest mobile communications operator, providing telecommunications services centered on mobile phones nationwide. The company's core business encompasses a wide range of communication infrastructure, including mobile phone services such as 5G, LTE, and FOMA, as well as optical broadband services, satellite phone services, and international communications services. Device sales also represent an important revenue stream.

The company serves both individual and corporate customers, with a revenue structure centered on telecommunications while pursuing diversification. For individual customers, monthly service fees, call charges, and data transmission fees are primary revenue sources, while for corporate customers, the company also provides system development and IoT solutions. In recent years, beyond telecommunications, the company has strengthened lifestyle-related services including video and music streaming, financial payment services, and shopping platforms to diversify revenue.

The company's business is organized into three segments. The "Telecommunications Business" handles core services such as mobile phones and optical lines; the "Smart Life Business" provides digital content including video streaming services, payment services, and shopping platforms; and "Other Business" manages device protection services, corporate IoT solutions, and system development outsourcing. The company operates as a group with 96 subsidiaries and 27 affiliated companies, building a structure that pursues business specialization and operational efficiency.

NTT Docomo is advancing its strategy based on the "beyond Declaration" mid-term strategy established in 2017, focusing on "transforming business operations centered on members" and "5G deployment and business creation" for sustainable growth in the 2020s. The company has set targets of 5 trillion yen in operating revenue for fiscal 2021 and 9.9 billion yen in operating profit for fiscal 2023, prioritizing revenue opportunities through customer base expansion. Specifically, the company plans to expand d-point membership to 78 million members and corporate partners to 5,000 by fiscal 2021.

Priority investment focuses on strengthening financial and payment services. NTT Docomo plans to expand locations where "d-point," "d-payment," and "iD" can be used to 2 million by fiscal 2021, targeting 6 trillion yen in financial and payment transaction volume. In corporate business, the company aims to achieve 120 billion yen in corporate solution revenue by fiscal 2021 through solution creation by small teams called "Top Gun" and the "Docomo 5G Open Partner Program." Through these differentiation strategies, the company is transitioning from a traditional telecommunications operator to a platform company.

In new market development, the company is actively expanding into content distribution, healthcare, and mobility services. Particular focus includes video, music, and e-book distribution services through d-market and expanded financial services using the "d-card" credit card. The company is also advancing new service development through partnerships with companies in different industries and establishing marketing solution businesses leveraging member attributes.

For technology innovation, NTT Docomo is investing a cumulative 1 trillion yen in 5G network construction from fiscal 2019 through fiscal 2023, targeting early deployment of 20,000 base stations by the end of fiscal 2021. Leveraging 5G's high-speed, large-capacity, low-latency, and multi-device connectivity features, the company provides new immersive services such as VR, AR, and MR for general customers, and solutions including remote medical care, disaster prevention and mitigation, and remote-controlled construction machinery for corporate customers, contributing to solving social issues through new value creation.