DoCoMo aiming to reverse the decline of Aggregate ARPU through continued increase in packet ARPU
In the recent years, the ARPU from voice service has been declining due to the factors of discounted services and shorter phone calls. DOCOMO has seen downward trend in aggregate ARPU and is planning to offset this by taking steps to increase packet ARPU. In FY 2010, the ARPU from packet service is expected to surpass voice ARPU. To strengthen packet based services and reverse downtrend of aggregate ARPU, DoCoMo is planning to promote usage of flat-rate service. In FY 2009, the revenues from voice declined 12.9% year-on-year and aggregate ARPU declined 6.3% year-on-year. Packet revenue grew 2.9% year-on year and expected to surpass voice ARPU in FY, 2010. DOCOMO is aiming to increase packet ARPU by 4.5% in FY 2010.
In FY 2010, revenue from data is expected to reach $ 29.30 surpassing voice ARPU of 29.10.
Initiatives to strengthen Data Services by introduction of Flat Rate Service: DoCoMo has taken initiatives to expand its packet usage to offset declining Voice ARPU by promoting monthly flat rate services like i-mode. I-mode packet service allows monthly flat rate which varies in accordance with monthly usage. The operator in July 2009, as well introduced a flat rate data plan for data cards to enhance its data services. It aims to increase packet flat rate subscription by more than 6 million to reach 31.70 million subscriptions in FY10, i.e. 63% of total consumers.
Promote packet communications by enhanced services and content: DoCoMo is working to expand its lineup services and content. The operator will take steps to expand subscriptions and usage among a broad range of customers by expanding to areas closely linked to lifestyles, such as tourism and health care. Mobile phone usage is expanding rapidly with the availability of higher speed networks and more advanced handsets, but most of the video content that is available for handsets user is not optimized to smaller screens. DOCOMO is moving ahead with development of content that suits well for mobile phones and smaller screens ( about 3 to 4 inch). BeeTV launched in May, 2009 was one of those initiatives. DOCOMO is developing handsets functions which would be more suitable for replaying videos and other contents by introducing inline Flash.
Promote smart phone adoptions to strengthen data services. The market strategy of promoting smart phones with advanced functions rivaling those of mobile PC’s, such as general purpose operating systems, Internet connections capabilities, schedule managers, and personnel information management, as well as PC data cards, is positioned as an important part of efforts to expand packet ARPU. DOCOMO, principally targeting enterprise demand to strengthen its promotion of smart phones and data cards for PCs.
Initiatives of more advanced networks by introducing LTE: In 2009, DOCOMO introduced HSUPA services, which has the capability to deliver maximum uplink transmission rate of 5.7 Mbps . DOCOMO plans to launch LTE based services in December 2010. It aims to install nearly 1000 Base Station in FY 2010. The rollout will be progressive with high demand areas (Tokyo, Osaka, Nagoya) will be covered first using an overlay approach with existing 3G areas. Downlink speeds up to 37.5 Mbps will be offered at the time of launch. DOCOMO plans to introduce data devices first and smart phones are scheduled in 2011.
In FY 2010, DOCOMO will Launch LTE in high demand areas (Tokyo, Osaka and Nagoya). It aims to install 1000 Base Stations in FY 2010
