NTT DOCOMO has decided to diverse its business by providing mobile network consulting services to overseas mobile operators.
The strategy of NTT DOCOMO will prompt the Japanese telecom operator to compete with telecom network vendors such as ZTE, Huawei, Nokia Networks, Alcatel-Lucent, Ericsson, etc.
The diversification plan of NTT DOCOMO stems the fact that the telecom operator is facing challenges in adding extra revenue from traditional telecom services. The revenue growth of NTT DOCOMO in H1 fiscal 2016 was just 42 billion yen.
The focus of NTT DOCOMO will be to assist telecom network operators in enhancing the quality of networks around the world excluding Japan.
NTT DOCOMO has already bagged a deal to offer network consulting services to Smart Communications, a wireless services provider in the Philippines. The deal will focus on improvement and optimization of radio network quality in Metro Manila.
NTT DOCOMO has experience in advising and supporting its partner telecom operators in other countries, helping them optimize their cellular networks to deliver high-quality services to customers.
Outside Japan, the company is providing technical and operational expertise to 7 mobile operators and other partner companies, and is contributing to the global standardization of mobile technologies.
The company serves over 68 million mobile customers in Japan via advanced wireless networks, including a LTE network and LTE-Advanced networks. DOCOMO will be developing and deploying 5G network by 2020. Other focus areas of the company includes network function virtualization (NFV), NFC infrastructure and services, emerging IoT solutions, and more.
Is NTT DOCOMO the right partner for consulting?
NTT DOCOMO is growing slowly. Its operating revenues reached 2,215 billion yen (+42 billion yen), while operating income touched 462.6 billion yen (+63 billion yen) in H1 fiscal 2016.
The marginal growth in revenue and profit indicates that NTT DOCOMO is struggling in the Japanese telecom market. It is trying to add revenues from smart-life business and other businesses. It did not work out well.
However, the network focus assisted NTT DOCOMO to increase net additions by 1.6-fold to 1.9 million.
The mobile operator also reduced churn via the Mobile Number Portability (MNP) system by 80 percent to 40,000, while churn rate was maintained at 0.58 percent.
NTT DOCOMO has rolled out 7,700 compatible LTE base stations in 640 cities across Japan. In October 2015, it started offering transmission speeds of up to 300Mbps, the fastest mobile transmission in Japan, to take on main rival SoftBank.
NTT DOCOMO received the No. 1 ranking in the customer satisfaction survey conducted by J.D. Power.
Baburajan K
editor@telecomlead.com