Docomo restructures to boost growth

NTT Docomo restructures to boost growth

15 MAY 2015

Japan’s NTT Docomo announced today it is reorganising its business structure and setting up a number of new business units, as part of an initiative aimed at achieving its medium-term financial targets.

The organisational changes, which will take effect on 1 July, include creating a broadband business department and a sales and marketing division.

The country’s leading operator reported a 12 per cent decline in net income in its fiscal year ending 31 March as service revenue fell due to continued heavy discounts to attract new subscribers. Its EBITDA margin dropped 4 points to 31.2 per cent from a year ago and is expected to fall by another 1.5 points to 29.7 per cent this fiscal year.

The new broadband business unit will focus on further developing its optical-fibre services, including its new Hikari offering, and better linking with its mobile business.

Four existing departments will fall under the new sales and marketing division, which will be tasked with finding new mobile revenue streams. The four departments are strategic marketing, sales promotion, front-line support and billing services.

Two departments in its smart-life business division are being refocused. The online marketplace will become the consumer business department, with – as its name suggests – a focus on consumer-oriented initiatives and e-commerce. The content business will be renamed the platform business unit and will work on B2B2C opportunities as well as security-related services.

Finally, its corporate sales and marketing division will see the M2M unit renamed the IoT business department while the solution business unit will become the solution service department.

The company said the new structure is intended to strengthen its competitiveness in mobile and drive new growth in its smart-life business.

Its guidance for fiscal 2015 is 2.8 per cent growth in operating income and a 6.4 per cent increase in operating revenue. 4G connections this year are forecast to increase by 6.26 million to 37 million. Subscribers to its Hikari optical-fibre service, launched in March, are expected to hit 1.8 million.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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