NTT DoCoMo forecasts profit drop

Japan's dominant mobile operator NTT DoCoMo warned its profits will fall this year as it faces tough competition in a saturated market and a pending introduction of number portability. It also reported its yearly net profit fell 18 percent on lower sales. Stiff pricing competition is expected from Softbank, which recently completed its sale of Vodafone's Japan unit and is investing a large sum to make the business competitive. NTT DoCoMo today forecast a 3 percent fall in profits in the year to March 2007, and the operator will have to spend more to remain competitive.

For more about NTT DoCoMo's gloomy outlook:
- check out this report [1] from the Financial Times
- read this article [2] from AP