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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (59814)	2/7/2007 7:52:06 AM
From: slacker711	Respond to of 196845

DoCoMo Adds Fewer Users After Softbank Cuts Basic Fee (Update2) bloomberg.com By Masaki Kondo and Yoshinori Eki Feb. 7 (Bloomberg) -- NTT DoCoMo Inc., Japan's largest wireless operator, added a net 7,000 mobile phone users in January, less than 5 percent of the additions at rivals, after Softbank Corp. lowered basic monthly fees. DoCoMo today said it now has 52.2 million users, about 55 percent of the market. The Tokyo-based company in November had its first net loss of subscribers, a month after a government rule change made it easier for users to switch carriers. DoCoMo and rivals KDDI Corp. and Softbank are investing in network coverage and new phone models to lure users to their services after number portability increased competition in the $74 billion wireless industry. Softbank, controlled by Japanese billionaire Masayoshi Son, has promised to undercut competitors' monthly fees and last month set a 980 yen ($8) basic monthly rate. ``The trend of customers switching from DoCoMo to its competitors is increasingly clear,'' said Haruo Sato, a Tokyo- based analyst at a research unit of Tokai Tokyo Securities Co. He said the loss of subscriber growth may compel DoCoMo to respond with price cuts or other steps. He didn't elaborate. KDDI, which controls about 29 percent of the market, added 208,400 users in January. Its ``au'' brand service added a net 432,000 users in January, while its slower ``Tu-ka'' brand network lost a net 223,600, the Tokyo-based company said today in a faxed statement today. Softbank added a net 164,000 users January, bringing its total to 15.7 million. The company on Jan. 16 cut its basic monthly fee to 980 yen. The discount lured about 500,000 users, including 100,000 new subscribers, Softbank's Son said on Jan. 25. Subscriber Growth DoCoMo may increase its handset subsidies to try to lure users, Masayuki Hirata, the company's chief financial officer, said today in an interview in Tokyo. Handset subsidies at DoCoMo increased by 1,000 yen to 38,000 yen per unit in the three months ended Dec. 31, while KDDI cut its incentive payments by 2,000 yen to 35,000 yen. Softbank, which will announce its third-quarter earnings tomorrow, averaged 43,800 yen in per handset subsidies in the second quarter Last week KDDI said it may increase spending on its mobile network to a seven-year high to handle an increase in subscribers. The company expects to invest as much as 500 billion yen ($4.2 billion) in the 12 months to March 2008, compared with its 450 billion yen projection for this fiscal year. KDDI added a net 2.5 million subscribers last year, surpassing DoCoMo's 1.8 million in net additions. Softbank added a net 379,800 users, Telecommunications Carrier Association figures show. Japan's wireless operators are introducing handsets that can play music, receive TV broadcasting and listen to digital radio in an attempt to lure users from competitors. Increases in new subscribers may narrow profit margins because the companies absorb costs for subsidizing new handsets. To contact the reporters on this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net