Q&A for 3Q of FY2015.3

Q&A for the Third Quarter of the Fiscal Year Ending March 2015

Date Friday, January 30, 2015, 5:00 pm-6:00 pm
Location 20F Conference Room, Garden Air Tower
Respondents Takashi Tanaka, President; Hirofumi Morozumi, Executive Vice President; Makoto Takahashi, Senior Vice President; Yuzo Ishikawa, Senior Vice President; Tsutomu Fukuzaki, Associate Senior Vice President; Hidehiko Tajima, Associate Senior Vice President; Yoshiaki Uchida, Associate Senior Vice President; Takashi Shoji, Vice President; Hiroki Honda, General Manager, Corporate Management Division; Kenji Aketa, General Manager, Investor Relations Department (MC)

Questioner 1

Questioner 2

  • au ARPU growth and the increase in communications revenues appears to be slowing. Why is this? How do you plan to expand income in the medium term?

    The reason for the slowdown in au ARPU growth is that the number of people making the shift from feature phones to smartphones is leveling off. That being said, the third quarter marked the launch of the iPhone6/plus. We probably overemphasized our efforts to hold on to iPhone customers at the expense of encouraging customers to shift from feature phones to smartphones.
    Another factor was the impact of a slight increase in the number of customers taking advantage of the 2GB unlimited flat-rate data service plan. Until December, fewer than 40% of customers on the unlimited flat-rate data plan used 5GB or more. We made a comeback in this area in December, and we are currently stepping up our efforts in areas where we have strong penetration, such as with customers taking advantage of the Student Discount. We appear likely to be recovering. We will need to maintain unflagging efforts to bolster au ARPU.
    Regarding the increase in the number of subscribers, we are beginning to see the effects of a shrinking MNP market. We intend to keep working to increase smartphone penetration among customers who have been reluctant to make the shift by providing attractive services.
    We will provide more detailed explanations about our plans from next fiscal year onward around the time our next medium-term management plan commences.

  • What was your objective in introducing the upgrade program, and what has been the program's impact on income and expenses?

    Any impact on income and expenses should not affect our plans. We see this move as an effort to promote retention and encourage handset upgrades.

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