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Japanese operators see revenue boosts from 3G services

TOKYO-Japanese operators NTT DoCoMo Inc. and KDDI Corp. posted first-half results, with both operators achieving strong results boosted by third-generation services.

NTT DoCoMo posted an operating profit of $5.5 billion in the first half of its fiscal year, although its operating revenues were up 6.4 percent. The decline in operating profit was due to an increase in marketing for its FOMA 3G service. The operator said it is still on track to achieve a record full-year profit.

To that end, the operator raised its target number of FOMA subscribers by the end of March 2004 to 2 million from 1.5 million. The operator had more than 1 million 3G subscribers at the end of September.

The operator’s average revenue per user for its current-generation services declined 1.2 percent to $74 compared with the same period last year, but its FOMA aggregate ARPU increased 34.9 percent to $93.

KDDI also projected record operating profits for the full fiscal year due to its more than 10 million 1x subscribers. The company’s net profit reached $792 million on flat sales of $12.8 billion.

The carrier reported ARPU for its 1x service of $79 for the second fiscal quarter, down from $81 during the first quarter. It’s total ARPU was up slightly to $69.5 during the second quarter from $69 in the first quarter.

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