1

DoCoMo’s 3G Deploymentand

Actions for Sustainable Growth

Masaki YoshikawaManaging Director,

Global Coordination Department NTT DoCoMo, Inc.

November 23, 2005

Japan’s Cellular Phone MarketJapan’s Cellular Phone MarketJapan’s Cellular Phone MarketJapan’s Cellular Phone Market

56.056.0 ％％23.223.2 ％％

16.816.8 ％％

(As of September (As of September 2005)2005)

Market ShareMarket ShareMarket ShareMarket Share

Overview of Japan’s Cellular Phone MarketOverview of Japan’s Cellular Phone Market

61,136

69,349 75,944

81,921

36,219

41,011 44,149 46,328

3/2001 3/2002 3/2003 3/2004 3/2005

Market Total

Number of DoCoMo Subscribers

（（ thousandsthousands ））

*Source ： Telecommunications Carriers Association (TCA)

4.04.0 ％％86,998

48,825

9/2005

49,904

89,127

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1. Adoption of PDC, a proprietary technology, for 2G

2. High penetration rate of mobile internet service

3. Wide spread of handsets with various functionalities (e.g. camera, FeliCa, GPS, etc.)

5. Rapid deployment & growth of 3G services (W-CDMA vs. CDMA 1X)

4. Extremely small percentage of prepaid users

Characteristics of Japan’s Cellular Phone Market (1)Characteristics of Japan’s Cellular Phone Market (1)

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Subscribers （ million ）

Subscription Rate （ % ）

Total SubscribersTotal Subscribers 49.9 －Mobile Internet （ i-mode ） 45.1 90%

Camera-phones 39.1 78%

3G （ FOMA ） 16.8 34%

Prepaid 0.06 0.12%

Subscribers （ million ）

Subscription Rate （ % ）

Total SubscribersTotal Subscribers 89.1 －Mobile Internet 77.2 87%

Camera-phones 70.4 79%

3G （ W-CDMA, CDMA2000 1x ） 38.1 43%

Prepaid 2.7※ 3%※【 DoCoMo】

【 Market】

As of September, 2005

As of September, 2005

※As of Dec, 2004

Characteristics of Japan’s Cellular Phone Market (2)Characteristics of Japan’s Cellular Phone Market (2)

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Operator Network Launch Subscribers

DoCoMoW-CDMA

2001/10 16,770,100

Vodafone 2002/12 1,753,600

au CDMA2000 1X 2002/04 19,547,400

(2002) (2003)【 month 】

(2004)

(September 2005)

Growth of 3G Users in Japan (W-CDMA & CDMA2000 1x)Growth of 3G Users in Japan (W-CDMA & CDMA2000 1x)(subs.)

(2005) 4

Key Drivers for 3G SuccessKey Drivers for 3G Success

Network

ServicesHandsets

5

② ② Handset Standby TimeHandset Standby Time

600

500

400

300

200

100

0

Short

Long

●P2101V●N2001

●P900i●F900i

●D900i

●F2051

●P2051

●N2102V

●F2102V

　　　　 2002.3 　　　　 2003.3 　　　　　 2004.3 　　　　 2005.3 　　　　　

●N900i

Network and HandsetsNetwork and Handsets

① ① Outdoor Network CoverageOutdoor Network Coverage

100

80

60

40

20

0

22

99

91

602003.22051

series Launch

2004.2900i

seriesLaunch

2001.10

FOMA Launc

h　　　　 2002.3 　　　　 2003.3 　　　　　 2004.3 　　　　 2005.3 　　　　　

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Model Name 2051 series 2102V series 900i series 902i series

Main Model

Release 2003.1 ～ 2003.6 ～ 2004.2 ～ 2005.11 ～

Function

Effective Pixels for Camera

0.1 ～ 0.3

Mega pixel0.3 Mega pixel

1.2 ～ 2.0

Mega pixel2.0 Mega pixel

Videophone × ○

i-appli 　File Size

MAX 230KB MAX 500KB

Bar CodeReader

× × ○

i-mode FeliCa(Wallet Function)

× × △ only 2model ○

N2051 N2102V N900i

”※ FeliCa” is a registered trademark of SONY Corporation

After 900i seriesBefore 900i series

FOMA FOMA Handset Handset EvolutionEvolution

N902i

NEW

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i-mode maili-mode mail

i-appli DXi-appli DX

Deco-mailDeco-mailSites browsingSites browsing

i-motion maili-motion mail

JavaJava application application

Movie Clip

Movie Clip

FOMA Basic Service FOMA Basic Service ～ｉ～ｉ -mode-mode ～～

Send original movie clips Send original movie clips

Decorate i-mode mail with colored Decorate i-mode mail with colored backgrounds and text, images, and backgrounds and text, images, and music music

De

cora

tion

De

cora

tion

8

       

Ou

tdo

or S

iteC

usto

mer

Bra

nch

Head

Offic

e

Visual Net

Video Conference

FOMA Other Basic ServicesFOMA Other Basic Services

V Live

DoCoMo PlatformDoCoMo Platform

Live Streaming ServiceLive Streaming Service

FOMA FOMA 　　　　　　

cameracamera

PCPC

V-liveV-liveServerServer DoCoMoDoCoMo

NetworkNetworkISDNISDN

IP-VPNIP-VPNFOMAFOMA

JapanJapan OverseasOverseas

12 12 CountriesCountriesVideo CallVideo Call

UKUK

AustraliaAustralia

Hong KongHong Kong

SingaporeSingapore

South KoreaSouth Korea

AustriaAustria

TaiwanTaiwan

ItalyItaly

SpainSpain

FranceFrance

GermanyGermany

PortugalPortugal

(As of October,2005)(As of October,2005)

International Videophone

9

0

2,000

4,000

6,000

8,000

10,000

12,000

Packet ARPU 3,080 1,330

Voice ARPU 5,970 4,810

FOMA mova

\6,140\6,140

(Yen)

FOMA and mova ARPUFOMA and mova ARPU

\9,050\9,050

[ 05/7-9 (2Q) ][ 05/7-9 (2Q) ]

10

34%

66%

22%

78%

Challenge: expansion from traditional Challenge: expansion from traditional “Telecom Business Model” to “New Business Model”“Telecom Business Model” to “New Business Model”

Wallet

Commuter passCredit card

Music/Broadcast Safety & Security

TelecommunicationsTelecommunicationsUseful for every aspect of Useful for every aspect of

daily business/lifedaily business/life

Voice call MailVideophone

Poc

Telecom infrastructure

Webbrowsing

Evolution of Cellular ServicesEvolution of Cellular Services

Lifestyle infrastructure

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i-mode FeliCa i-mode FeliCa ～～ New Business HorizonNew Business Horizon ～～

KEY/ID

MEMBER’SCARD

FINANCE

TICKETTRANS-PORTATION

SHOPPING

ONLINESHOPPING

◆ The list of service providers include those planning to start service in the future.

“Edy” is a brand of prepaid e-money managed by bitWallet, Inc. ◆ “◆ Suica” is a registered trademark of East Japan Railway

Company. ※The logos of each service provider are presented in Japanese 　 syllabary order of the company name.

User base of i-mode FeliCa handsets:User base of i-mode FeliCa handsets:

6.5 million6.5 million(As of Sept. 30, 2005)(As of Sept. 30, 2005)

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