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NTT DoCoMo's CEO Discusses F3Q 2012 Results - Earnings Call Transcript

Stocks in this article: DCM

So, starting from the four units of the existing packet switches on the right, we’ve been gradually switching over to these new switches. And we saw a very steadfast progress, completing the accommodation of 23 units of fiber RNC. But now, the remaining 37 radio network controllers were about to be accommodated in a new packet switches.

But then immediately after the switch over, which was completed after around 3:00 in early morning, then starting from around 8:30 in the morning, we saw a gradual occurrence of congestion in the nodes. And then around 9:00, we have seen a steep increase of convectors – steep degradation of the congestion around 9:00 in the morning of 25th of January.

Now, on page five, so in order to tackle the problem, we established the task force for network infrastructure improvement. The task force is responsible to determine the causes of events that have occurred in line with the rapid increase in a number of smartphone users so that we can implement the immediate countermeasures against the cause of problems.

Secondly, the task force will also perform company-wide cross-sectional studies for stable network operations and further enhancement of processing capabilities so that we can construct the network infrastructure capable of accommodating 50 million smartphone users. So, as an immediate countermeasure against the series of malfunctions, we have decided to invest a total of ¥4 billion for the two years of 2011-2012.

Also, in order to construct an infrastructure capable of accommodating 50 million smartphones, we decided to implement drastic measures as we announced when we unveiled our medium-term vision. We set a plan, we set a target to acquire 40 million subscribers by fiscal 2015 with smartphones. So, in order to reinforce the sp-mode system, we decided to invest ¥40 billion for – in the period between 2011 and 2014 and also to invest ¥120 billion for the packet switch reinforcement.

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