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5. Average monthly revenue per unit (ARPU) |
Average monthly revenue per unit, or ARPU, is used to measure average monthly
operating revenues attributable to designated services on a per user basis. In
the case of our fixed line business, ARPU is calculated by dividing revenue items
in the operating revenues of our Regional Communications Services, that is, subscriber
lines services and ISDN, by the No. of active subscribers to the relevant services.
In the case of our cellular business, ARPU is calculated by dividing revenue
items included in the operating revenues from our Wireless Services, such as
revenues from Cellular (mova) services and revenues from Cellular (FOMA) services,
which are incurred consistently each month (i.e., monthly charges and voice/packet
transmission charges), by the No. of active subscribers to the relevant services
(the calculation of these figures excludes revenues that are not representative
of monthly average usage such as equipment sales and activation fees). We believe
that our ARPU figures calculated in this way provide useful information regarding
the monthly average usage of our subscribers. The revenue items included in the
numerators of our ARPU figures are based on our financial results comprising
our U.S. GAAP results of operations.
| Notes: 1 |
We separately compute ARPU for the fixed line business
conducted by each of NTT East and NTT West using two measures. |
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| - |
ARPU from telephone subscriber lines services,
which is based on operating revenues from monthly charges, call charges and FLET'S
ADSL charges attributable to our telephone subscriber lines services. |
| - |
ARPU from ISDN, which is based on operating revenues
from monthly charges, transmission/call charges and FLET'S ISDN charges attributable
to our ISDN. |
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| 2 |
Interconnection revenues are excluded in ARPU of Telephone Subscriber
Lines and ISDN Subscriber Lines. |
| 3 |
In terms of No. of channels, transmission
rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten
times greater than INS-Net 64. For this reason, one INS-Net 1500 subscription
is calculated as ten INS-Net 64 subscriptions. |
| 4 |
We compute ARPU for our cellular business using
two aggregate measures. |
| - |
Cellular Aggregate ARPU (FOMA+mova) = Voice ARPU
(FOMA+mova) + Packet ARPU (FOMA+mova). |
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| - |
Our Voice ARPU (FOMA+mova) is based on operating revenues related to voice services, such as monthly charges and voice transmission charges, attributable to our third generation FOMA and conventional mova services, and our Packet ARPU (FOMA+mova) is based on operating revenues related to packet communication services, such as monthly charges and packet transmission charges, attributable to our third generation FOMA services and based on operating revenues related to i-mode services, such as monthly charges and packet transmission charges, to our conventional mova services. We also separately compute i-mode ARPU (FOMA+mova), as a subcomponent of Packet ARPU (FOMA+mova). In particular, i-mode ARPU (FOMA+mova) is based on operating revenues from monthly charges and packet transmission charges attributable to our i-mode-related FOMA and mova services. |
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Cellular Aggregate ARPU (FOMA) = Voice ARPU (FOMA)
+ Packet ARPU (FOMA). |
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| - |
Our Voice ARPU (FOMA) is based on operating revenues related to voice services, such as monthly charges and voice transmission charges, and our Packet ARPU (FOMA) is based on operating revenues related to packet communication services, such as monthly charges and packet transmission charges, in each case attributable to our third generation FOMA services. We also separately compute i-mode ARPU (FOMA), as a subcomponent of Packet ARPU (FOMA). In particular, i-mode ARPU (FOMA) is based on operating revenues from monthly charges and packet transmission charges attributable to our i-mode-related FOMA services. |
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Cellular Aggregate ARPU (mova) = Cellular Voice
ARPU (mova) + i-mode ARPU (mova). |
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| - |
Our Voice ARPU (mova) is based on operating revenues
related to voice services, such as monthly charges and voice transmission charges,
and our i-mode ARPU (mova) is based on operating revenues related to i-mode services,
such as monthly charges and packet transmission charges, in each case attributable
to our conventional mova services. |
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| 5 |
We show ARPU for our i-mode using two aggregate
measures. |
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| - |
i-mode ARPU is based on the No. of all subscribers
who have active cellular phones, regardless of whether the i-mode service is
activated. |
| - |
ARPU generated purely from i-mode is based on
the No. of active subscribers to the i-mode service only. |
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| 6 |
International service-related revenues
in cellular business, which had not been included in previous reports, have been
included in the Cellular ARPU data calculation for the forecasts for the fiscal
year ending Mar. 31, 2006, due to its growing contribution to total revenues.
International service-related Cellular ARPU included in the Cellular ARPU forecasts
for the fiscal year ending Mar. 31, 2006, are 40 yen for Cellular Aggregate ARPU
(FOMA+mova), 60 yen for Cellular Aggregate ARPU (FOMA), and 30 yen for Cellular
Aggregate ARPU (mova). Cellular ARPU data in previous reports do not include
International service-related revenues, but Cellular Aggregate ARPU (FOMA+mova)
generated from International services for the relevant periods are 20 yen for
the fiscal year ended Mar. 31, 2004, 20 yen for 1st quarter ended Jun. 30, 2004,
20 yen for 2nd quarter ended Sept. 30, 2004, 30 yen for 3rd quarter ended Dec.
31, 2004, 30 yen for 4th quarter ended Mar. 31, 2005, and 20 yen for the fiscal
year ended Mar. 31, 2005. |
| 7 |
No. of DoPa single service subscribers,
which had not been included in previous reports, has been included in the No.
of mova subscribers from the results for the first six months of the fiscal year
ending Mar. 31, 2005 in order to standardize the definition of subscribers used
by all the mobile operators in Japan. DoPa single service subscribers and the
revenues thereof are not included in the ARPU calculations. |
| 8 |
No. of active subscribers used in ARPU calculation are as below. |
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FY Results & Forecast: Sum of No. of active
subscribers**(as defined below) for each month from Apr. to Mar. |
| - |
4Q Results: Sum of No. of active subscribers**(as
defined below) for each month from Jan. to Mar. |
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**active subscribers = (No. of subscribers at
end of previous month + No. of subscriber at end of current month)/2 |
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* Partial listing only. |
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Copyright (c) 2005 Nippon telegraph and telephone corporation
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