NTT Docomo will spend $4 billion as Capex (capital spending) this year to expand its LTE network in Japan to all regions now covered by the slower 3G service.
LTE, more than five times faster than 3G, is used by about a third of Japanese mobile phone subscribers.
The company plans to increase by next March its LTE base stations by 40,000 to around 100,000 — roughly equal to its 3G service.
For comparison, China Mobile recently said it will increase capital spending (Capex) by 22 percent to 225.2 billion yuan ($36.34 billion) from 184.9 billion yuan in 2013. One-third of this, or 75 billion yuan, will go to expanding 4G service it launched in December.
Also read: China Mobile outlines network strategy in 2014 and Capex
China Mobile, the largest telecom operator in the world, said 44 percent of its 2014 Capex will be earmarked for network, 28 percent for transmission, 5 percent for support services, etc. In 2013, 40 percent of Capex was dedicated for network.
In January 2013, NTT Docomo said its revenue for the nine months ended 31 December 2013 fell 0.2 percent to JPY3.364 trillion ($32.85 billion). Operating income decreased byJPY13.5 billion to JPY688.7 billion.
The company’s net profit rose 3.8 percent to JPY425.2 billion from JPY409.8 billion in 9M FY2012.
NTT Docomo reported 62.18 million subscribers at end-December 2013, up 2.0 percent year-on-year from 60.98 million in 9M FY2012.
It said 3G subscribers, marketed under the FOMA brand, decreased 17.5 percent to 43.160 million users, while 4G subscribers, marketed under the brand name Xi, increased 2.2-fold to 19.02 million compared to the 8.67 million reported twelve months previously.
picture source: reuters
