NTT DOCOMO FACTBOOK

Apr. 2011

About NTT DOCOMO

NTT DOCOMO, INC. is the world's leading mobile communications company with over 57 million customers in January 2011. Of these, 55 million subscribe to FOMA, launched as the world's first 3G mobile service based on the W-CDMA mobile standard in 2001. DOCOMO offers a wide variety of leading-edge mobile-multimedia services, including i-mode, the world's most popular mobile e-mail/Internet platform, used by 48 million people. With the addition of credit-card and other mobile-wallet functions, DOCOMOs handset has become highly versatile tools for daily life. DOCOMO had net income of JPY 494.8billion (USD 5,318 million) on operating revenue of JPY 4,284.4 billion (USD 46,049 million) in fiscal 2009 (ended March 2010). (JPY93.04 = USD1.00; Mar. 31, 10 )

Ryuji Yamada assumed the posts of NTT DOCOMO, INC. President and CEO in June 2008, crowning a distinguished 35-year career with both DOCOMO and its parent company, Nippon Telegraph and Telephone Corporation (NTT). Mr. Yamada is a principal architect of the NTT Groups strategic longterm transition from fixed voice services to IP and related services, including mobile communications.

Headquarters Tokyo, Japan Employees (consolidated) 22,297 (March 31, 2010) Establishment August 1991 Stock Listings Tokyo (9437) London (NDCM) New York (DCM)

Corporate Philosophy
With the aim of creating a new world of communications culture, we NTT DOCOMO will devote all the skills, knowhow and energy towards the establishment of more "personal communication" with our customers that contributes to their heartfelt satisfaction.

We will create a new communication culture

We will satisfy our customers

We will fully utilize individual potential

Concept Tree
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Subscriber Market Share

Japans mobile phone market has continued to expand even as it showed signs of maturing. At the end of 2007, total subscriptions surpassed 100 million and the penetration rate reached approx. 80%. Down through the years, DOCOMO has consistently maintained a subscriber market share of approx. 50%. However, DOCOMO needed to make a clear break from its former business model, which had reached its limit.

Total Number of Subscriptions

(Millions of subscribers)

Subscriber Market Share

2.6%
Mature period
Customer Retention

Growth period
New Customer 100

increase of 5 millions subscriber per year

21.1%
Subscribers as of Feb.28 2011

80

48.7%

60

increase of 10 millions subscriber per year

54% 53% 53%

Market Overall
52% 52% 52% 51.2%

27.7%

54%

40 DOCOMO au 20 SoftBank EMOBILE

97/3

Source: Telecommunications Carriers Association (TCA)

99/3 01/3 03/3 05/3 07/3 09/3

Stronger Brand Loyalty

In fiscal 2008, DOCOMO shifted the focus of its marketing efforts to concentrate on strengthening brand loyalty among its 54 million existing customers. Previously focused on acquiring new customers and minimizing churn, DOCOMO is now striving to extend the depth and duration of its existing customer relationships. DOCOMO has supported this effort by renewing its commitments, introducing new corporate branding and integrating its former regional-subsidiary structure for greater efficiency.

New Commitments New Commitments

(April 18, 2008) (April 18, 2008)

New Logo New Logo

(July 1, 2008) (July 1, 2008)

ties with our customers.

We will revamp our brand and strengthen

We will actively seek out the voices and opinions of our customers so that we can continue to exceed their expectations.

Integration of Regional Subsidiaries Integration of Regional Subsidiaries that we can earn the respect and
admiration of people worldwide.
Hokkaido Hokuriku Chugoku Hokkaido Hokuriku Chugoku

We will continue to drive innovation so

(July 1, 2008) (July 1, 2008)

We will become an organization whose energetic staff is capable of overcoming all challenges in pursuit of our corporate vision.

Tohoku Tohoku Chuo Chuo

Tokai Tokai Kansai Kansai

Shikoku Shikoku Kyushu Kyushu

Nationwide operations under a single entity

Customer Satisfaction Improvement

Received No.1 ranking in J.D. Power Asia Pacific Japan Business Mobile Phone/PHS Service Customer Satisfaction Index Study for 2 straight years (Sept. 16, 2010)*1 Received No. 1 ranking in Nikkei BP Consulting customer satisfaction survey on mobile data communications services for 2 straight years*2

<<Enterprise Sector>> No. 1 ranking in FY2009-2010 customer satisfaction survey for 2 straight years

<<Data Communications Services>> No. 1 ranking in FY2009-2010 customer satisfaction survey for 2 straight years

Data card use Overall score Overall score

No. 1 No. 1
Responsiveness of sales contact

satisfaction scores for:

Service area Communication quality Overall rating

No. 1

Service content Service quality

Awarded No.1 for 2 straight years

Awarded No.1 for 2 straight years

Received highest score in 6 items out of total 15 items including overall satisfaction
Area coverage Area coverage (Outdoor & indoor) (Outdoor & indoor) Responsiveness of retailer/shop Responsiveness of retailer/shop attendants attendants Communication quality Communication quality

Cost

After-sales support After-sales support

*1 Source: J.D. Power Asia Pacific 2009-2010 Japan Business Mobile Phone/PHS Service Customer Satisfaction Index StudySM. Study results was based on 3,222 responses from individuals responsible for supervising or deciding upon telephone services at 2,345 businesses with more than 100 employees. (Each respondent evaluated up to two mobile telephone/PHS providers). www.jdpower.co.jp *2 Source; Nikkei BP Consulting 2nd Mobile data devices customer satisfaction survey: area coverage (outdoor), area coverage (indoor) , communications quality (disruption of connection), responsiveness of retailer/shop attendants, after-sales support scores

Churn Rate
Maintained churn rate at a very low level of 0.46% in FY2010/3Q
Cellular (Xi+FOMA+mova) Churn Rate
2.00

(%)

1.50

Company A
1.00

0.94 0.85 0.74

0.50

0.68 0.51
Company B

0.52 0.44

0.52 0.44 0.46 0.45 0.49 0.44 0.49 0.46

docomo
0.00 1Q 2Q
FY2007

3Q

4Q

1Q
FY2008

2Q

3Q

4Q
FY2009

1Q

2Q

3Q
FY2010

4Q

1Q

2Q

3Q

Networks

Subscriber Migration to FOMA / Xi

Total number of migrations in FY2010/1-3Q (cumulative): 1.06 million Aim to increase FOMA subs to 98% of total cellular subs by Mar. 31, 2011
(Million subs)

Numbers in parentheses indicate the percentage of FOMA+Xi subscriptions to total cellular subscriptions

10

Network Coverage
Implemented various measures to improve FOMA coverage and quality

Principal actions taken in FY2009

Enhancement of HSDPA speed (7.2Mbps) pop. coverage: 100% Visiting customer within 48 hours Tokyo Metropolitan Expressway quality improvement Area quality improvement using compact BS (booster) (indoors)

HSDPA coverage expansion

Achieved 100% pop. coverage in 2 years and 4 months after service launch
Pop. coverage (%)
100 9 8 80 81
Service launch 2006/8

Customer visit within 48 hours

2008/07 Trial service in some areas of Kanto Koshinetsu 2008/10 2009/01 mova Full-scale launch in Kanto Koshinetsu, Hokuriku and Kyushu Expanded to nationwide scale

10 0

HSDPA

FOMA

Actions taken during customer visit:

Area quality investigation, installation of FOMA repeater/indoor auxiliary antenna, explanation of area quality improvement plans, etc.

60

40

Service launch (nationwide) 2002/4

20

Service launch 1993/3 Service launch (Chuo) 2001/10

Seek higher customer satisfaction

3 4 5 6 7 8

Year of service launch

No. of years after launch

11

LTE (1)
Launched Japans first LTE (Long Term Evolution) mobile service on December 24, 2010 Provide brand-new services leveraging LTEs distinctive featureshigh-speed, large-capacity and low-latency transmission

LTEs distinctive features

Service brand/logo

High-speed
Transmission rate

Large-capacity
Spectrum efficiency

Low-latency
Transmission latency (maximum effect)

Approx. 10-fold*

Approx. 3-fold

Approx. 1/4

(Comparison with FOMA (HSPA) service)

(Pronounced Crossy)
Area expansion using an overlay approach to existing 3G areas
The X denotes both connection and infinite possibility, and the i both individual user and innovation.

3G area

LTE areas

12

LTE (2)
Achieving steadfast progress in base station roll-out Planned base station deployment in FY2010: Approx. 1,000 BTSs in Tokyo/Nagoya/Osaka

FY2010
LTE-related CAPEX:

FY2011

FY2012

FY2013

FY2014
Approx. 35,000 BTSs

Approx 35.0 billion

(From June) (Dec.)

Approx. 100.0 billion Approx. 170.0 billion

Approx. 70% POP coverage

Mobile Wi-Fi router (planned)

Approx. 15,000 BTSs

Trial operation of commercial network Trial operation of commercial network

Data communication device Handset-type device (planned)

No. of base stations:

Approx. 40% POP coverage

LTE service launch

Approx. 1,000 BTSs

(breakdown)

Further area expansion

Approx. 5,000 BTSs

Tokyo: Approx. 800 Nagoya: Approx. 100 Osaka: Approx. 100

Approx. 20% POP coverage

Major cities across Japan

Approx.

7% POP coverage Prefectural capital-size cities

Tokyo/Nagoya/Osaka

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Services

14

Advancing the Roles of Mobile Phone

DOCOMO aims to evolve mobile phone to take the role of assisting customers individual behavior. We will take on the challenge of advancing the roles of mobile phone.

Roles of mobile phones

Personalization of services

DOCOMOs Challenge DOCOMOs Challenge

Behavior assistance
Transformation into lifestyle infrastructure

Life assistance

Locating Security Auction

Advancement of IT

Osaifu-keitai e-wallet

Advancement of communication

InformationInternet access Video access

Gaming Music Telephone Intl dialing e-mail

Search engine Filtering One-seg TV Comic

Communication

Videophone Push-to-talk 2 in 1 Deco-mail

Continual evolution of mobile phones and network

Time/evolution
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Growth of Packet ARPU

Growth rate of packet ARPU has accelerated Expanded uptake of smartphones/PC data services and increased i-mode revenues significantly contributed to growth of packet revenues

YOY packet ARPU comparison

Historical growth of packet revenues

(Billions of yen)
FY2010/1-3Q (cumulative):

1,261.8 billion

FY2009/1-3Q (cumulative):

1,185.2 billion
YOY growth rate*1 (%) Packet ARPU (yen)

Breakdown of increased packet revenues:

1-3Q (9 months) cumulative 3Q 3 months

16

Lifestyle Applications for Payments

One of our lifestyle applications is Osaifu-Keitai, mobile-wallet service for e-money, e-credit cards, travel tickets, membership cards, ID, door keys and more. iD, DOCOMO platform for e-credit cards has more than 15.5million subscribers and some 494,000 payment terminals installed. DCMX, DOCOMOs e-credit card, has more than 10 million members.
iD

DOCOMO platform for storing e-credit cards of any brand. Phone is merely waved over merchant terminal to complete transaction.
16 14
Subscribers of iD million Subscribers iD payment terminals installed

550 450
iD payment terminals installed (thousand)

12 10 8
6

350
15milloion subscribers in August 2010

iD payment terminals installed 494,000 as of Dec 31, 2010 iD deployment overseas Guam
DCMX

250

150 4 2
July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug

50

DOCOMO brand for e-credit card has more than 10 million members

2006

2007

2008

2009

2010
As of August 31,2010

iD is acceptable to make payments at all McDonalds shops, iD is acceptable to make payments at all McDonalds shops, and major franchising convenience stores in Japan and major franchising convenience stores in Japan
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Handset Lineup
Launched 2010 Winter 2011 Spring Model handsets comprising 28 different models in 72 colors, the largest and most diverse collection of models ever released by DOCOMO. The lineup offers a wide selection of FOMA 3G handsets in four user-segmented series, highly versatile smartphones, data terminals for DOCOMOs upcoming Xi (read Crossy) LTE extra-high-speed service, and more.

LTE Others

docomo Smartphone

LTE

18

Service Personalization -i-concier Aim to increase i-concier subscriptions to 7.90 million by increasing no. of compatible handsets Increase local information content, aiming to offer personal agent service to enhance convenience of everyday life

i-concier i-concier functional enhancement

No. of subscriptions
(Million subs)

-Memo function-

(Launched November 2010)

5.41 4.78
(Million subs)

5.80

4.20 3.10 2.34 1.56 0.93

ad Ste

wth gro t fa s

08/12 09/3

09/06 09/09 09/12 10/3

10/6

10/9

10/12

Auto-GPS enabled services

Auto GPS information Auto GPS reminder Last train alert
1.56 0.93

(Launched November 2009)

493 423 New type of behavior support service 332 244

548

611

Local machi-chara passport

Auto GPS weather/earthquake info

19

Social-Support Services
Expand revenue base by further advancing new businesses in the fields of health care finance/payment and environment/ecology that are beginning to take off.

Address social issues Address social issues

Finance/ payment business Health care business Environment/ ecology business

Utilize DOCOMOs strengths Utilize DOCOMOs strengths

Education support business

Social Platform

Safety/ security business Medical support Wellness support

Health care/ medical management business

Establish infrastructure for distributing personal medical information using mobile phones
MD+

Finance/payment business
Aim to further diversify finance/payment services and businesses

Environment/ecology business
Establish information infrastructure by combining sensing technologies with mobile communications Environment sensor network

(Medical information service) Medical Brain (Information support service for health care workers) Wellness support

docomo one-time insurance docomo mobile remittance service Promotion of mobile CRM

Bicycle sharing business Smart tap

(visualization of power usage)

20

International Business

21

Diversified International Services

DOCOMO is steadily increasing its international service offerings, focusing on both travelers and multinational enterprise customers, as well as the development of new business in collaboration with foreign partners.

More services for international travelers

Expanded service areas for international roaming (voice, videophone and packet data communication) Wider lineup of phones that support international roaming.

International solutions for companies

One-stop enterprise solutions (mainly for companies with communication needs both in Japan and overseas). Solutions developed and delivered in collaboration with overseas subsidiaries and capital/business partners, including members of the Conexus Mobile Alliance.

Overseas Business Deployment

New business developed with capital or business partners, mainly in the Asian Pacific region. Reinforced alliances in Asian Pacific, centered on the Conexus Mobile Alliance.

International phone services

For travelers / visitors

Enterprise solutions
For overseas offices

Overseas Business Deployment

Mainly in Asian Pacific

International roaming Dialing from Japan Solutions for Japanese enterprises overseas

Capital & business partners

Preferred roaming

Seamless mobile services through collaborations

22

International Roaming via Conexus Partners

Established in April 2006 primarily to develop international roaming and corporate mobile services, the Conexus Mobile Alliance has become one of Asia's biggest mobile alliances. The alliance members combined have about 280 million users of mobile voice, video and data roaming on GSM, GPRS and W-CDMA networks, some including HSDPA.

S. Korea

Japan

Mobile alliance comprising 280 million customers

Hong Kong/Macau Taiwan

India Vietnam

Thailand

Singapore Indonesia

Philippines

23

Investment in Mobile Operators Overseas

Since 1999, DOCOMO has been expanding its influence in the Asian Pacific by establishing equity positions in companies that operate in important markets within the region. These investments enable DOCOMO to use its technical expertise and business know-how to help partners increase their corporate value.

S. Korea

India Hong Kong/Macau

Dec. 2005 5.46% ownership

Taiwan

Dec. 1999 24.1% ownership Feb. 2001 4.7% ownership

Mar. 2009 26% ownership

Philippines

Guam & Mariana

Bangladesh

Mar. 2006 14.1% ownership (20% by NTT group combined)

Dec. 2006 100% ownership

Sept. 2008 30% ownership

(As of January, 2010)

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Global Expansion
Deploy and expand business in each layer in markets outside Japan TTSL achieves favorable growth in subscriber count, with GSM coverage being expanded on a continual basis
Enhance added value

Comic delivery Comic delivery

Info. delivery Info. delivery

New content New content

Content
Deployment mainly in mature markets

Application/Platform

Expand and strengthen Expand and strengthen value-added service business value-added service business leveraging net mobile AG leveraging net mobile AG

Network/ infrastructure
Deployment mainly in growth markets

Accelerate growth by providing know-how on network roll-out, etc.

Enhance enterprise value through network Enhance enterprise value through network construction support, etc. construction support, etc. Capture growth of investee Capture growth of investee

India (TTSL) New service brand for GSM (TATA DOCOMO)

GSM service launched in South India on June 24, 2009. i-channel service launched on September 7,2009.

3G spectrum auction results in India

Jammu & Kashmir Punjab Haryana Delhi Himachal Pradesh

Actions aimed at enhancing enterprise value of investee

Rajasthan UP(E) Assam, North East Bihar Gujarat Madhya Pradesh West Bengal Mum bai Maharashtra Andhra Pradesh Orissa Kolkata

UP(W)

Circles won by TTSL Circles won by TTML Circles not won

(Out of total 22 circles) (Out of total 22 circles)

Karnataka Kerala Tamil Nadu Chennai

Won licenses in 9 circles Won licenses in 9 circles

25

Investment in Other Companies Overseas

Besides investing in mobile operators overseas, DOCOMO is also investing in a range of other companies that have the potential for not only further growth, but also synergy with DOCOMO.

Technologies
KT-NTT DoCoMo Mobile KTKT-NTT DoCoMo Mobile Investment Limited Investment Limited Partnership (Nov. 2007) Partnership (Nov. 2007)

Korean venture fund Korean venture fund targeting mobile/IT targeting mobile/IT companies companies DOCOMO Capital (Jul. DOCOMO Capital (Jul. 2005) 2005) U.S. high-tech venture U.S. high-tech venture capital firm capital firm Gobi Fund (Dec. 2003) Gobi Fund (Dec. 2003) Gobi Fund(May.2007) Gobi Fund Fund(May.2007) Chinese venture fund Chinese venture fund targeting media companies targeting media companies

Global Mobility Support

net mobile (Dec. 2009) net mobile (Dec. 2009)

Blue Ocean Wireless (Sept. 2008) Blue Ocean Wireless (Sept. 2008)
Ireland-based company offering Maritime Ireland-based company offering Maritime GSM services GSM services DOCOMO interTouch (Dec. 2004 )) DOCOMO interTouch (Dec. 2004 Singapore-based high-speed Internet Singapore-based high-speed Internet access provider for hotels access provider for hotels

Fleet Management Services

Mobile Innovation (May. 2004) Mobile Innovation (May. 2004) Thai fleet management service Thai fleet management service provider provider

Germany-based Germany-based mobile-content distributionmobile-content distributionplatform company platform company

Dates of investments appear in parentheses.

(As of April 2, 2010)

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