News Release tstq070511c

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 telephone user basis. In the case of our fixed line business, ARPU is calculated by dividing revenue items included in the operating revenues of our Regional Communications Business, that is, telephone subscriber lines, INS-NET and B FLET's, 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 Mobile Communications Business, 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, activation fees and universal service charges).
We believe that our ARPU figures calculated in this way provide useful information regarding the monthly average usage of our subscribers and the impact of changes in our billing arrangements. 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.

*	Partial listing only.

Notes :

We separately compute the following 4 categories of ARPU for the fixed line business conducted by each of NTT East and NTT West, using the following measures.

-	Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines): Calculated based on revenue from monthly charges and call charges for Telephone Subscriber Lines and INS-NET Subscriber Lines, which are included in operating revenues from Voice Transmission Services (excluding IP Services), and revenues from FLET'S ADSL and FLET'S ISDN, which are included in operating revenues from IP Services.
-	Telephone Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and revenues from FLET'S ADSL.
-	INS-NET Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for INS-NET Subscriber Lines and revenues from FLET'S ISDN.
-	B FLET'S ARPU: Calculated based on revenues from B FLET'S and revenues from monthly charges, call charges and connection device charges for Hikari Phone, both of which are included in operating revenues from IP Services.
	-	B FLET'S includes FLET'S Hikari Premium and FLET'S Hikari Mytown provided by NTT West.

Revenues from interconnection charges are excluded from the calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines +INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU, INS-NET Subscriber Lines ARPU, and B FLET's ARPU.

For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines +INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU and INS-NET Subscriber Lines ARPU, No. of subscribers is determined using the No. of lines for each service.

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.

For purposes of calculating B FLET's ARPU, No. of subscribers is determined based on the No. of B FLET's subscribers, including FLET'S Hikari Premium and FLET'S Hikari Mytown provided by NTT West.

We compute ARPU for our cellular business using 3 aggregate measures.

-	Cellular Aggregate ARPU (FOMA+mova) = Voice ARPU (FOMA+mova) + Packet ARPU (FOMA+mova).
	-	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, attributable to our conventional mova services. We also separately compute i-mode ARPU (FOMA+mova), as a subcomponent of Packet ARPU (FOMA+mova). 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.
-	Cellular Aggregate ARPU (FOMA) = Voice ARPU (FOMA) + Packet ARPU (FOMA).
	-	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). i-mode ARPU (FOMA) is based on operating revenues from monthly charges and packet transmission charges attributable to our i-mode-related FOMA services.
-	Cellular Aggregate ARPU (mova) = Cellular Voice ARPU (mova) + i-mode ARPU (mova).
	-	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.

We show ARPU for our i-mode using two aggregate measures.

-	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.

Communications module service subscribers and the revenues therefrom are not included in the calculations of cellular ARPU.

No. of active subscribers used in the ARPU calculation of NTT East and NTT West are as below.

-	1Q Results: Sum of No. of active subscribers**(as defined below) for each month from Apr. to Jun.
-	2Q Results: Sum of No. of active subscribers** for each month from Jul. to Sept.
-	3Q Results: Sum of No. of active subscribers** for each month from Oct. to Dec.
-	Nine Months Results: Sum of No. of active subscribers** for each month from Apr. to Dec.
-	FY Results : Sum of No. of active subscribers** for each month from Apr. to Mar.
-	FY Forecast : the average expected active No. of subscribers (No. of subscribers at end of Mar. + No. of expected subscribers at end of the following Mar.)/2 x 12

No. of active subscribers used in the ARPU calculation of NTT DoCoMo are as below.

1Q Results: Sum of No. of active subscribers**(as defined below) for each month from Apr. to Jun.

2Q Results: Sum of No. of active subscribers** for each month from Jul. to Sept.

3Q Results: Sum of No. of active subscribers** for each month from Oct. to Dec.

Nine Months Results: Sum of No. of active subscribers** for each month from Apr. to Dec.

FY Results/FY Forecast : Sum of No. of active subscribers** for each month from Apr. to Mar.

**	active subscribers = (No. of subscribers at end of previous month + No. of expected subscribers at end of the current month)/2