News Release ghvz090513c

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 included in the operating revenues of our Regional Communications Business, that is, telephone subscriber lines, INS-NET and FLET'S Hikari, by the number of active subscribers to the relevant services.
In the case of our mobile business, ARPU is calculated by dividing revenue items included in the operating revenues from our Mobile Communications Business, such as revenues from Mobile (mova) services and revenues from Mobile (FOMA) services, which are incurred consistently each month (i.e., basic monthly charges and voice/packet transmission charges), by the number 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. 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 four 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 revenues 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.

FLET'S Hikari ARPU: Calculated based on revenues from FLET'S Hikari (including FLET'S Hikari optional services), which are included in operating revenues from IP Services and Supplementary Business, and revenues from monthly charges, call charges and device connection charges for Hikari Phone, which are included in operating revenues from IP Services.

FLET'S Hikari includes B FLET'S and FLET'S Hikari Next (launched on Mar. 31, 2008) provided by NTT East, and B FLET'S, FLET'S Hikari Premium, FLET'S Hikari Mytown and FLET'S Hikari Next (launched on Mar. 31, 2008) provided by NTT West.

Commencing in the fiscal year ending Mar. 31, 2009, NTT East has included in its FLET'S Hikari ARPU calculation revenues from NTT East's "FLET'S VIRUS CLEAR" anti-virus software option, which are part of NTT East's operating revenues from Supplementary Business.
As a result of this new calculation methodology, NTT East's FLET'S Hikari ARPU for the three months ended Jun. 30, 2007, Sept. 30, 2007, Dec. 31, 2007 and Mar. 31, 2008 and for the fiscal year ended Mar. 31, 2008 increased, respectively, by 0 yen, 0 yen, 10 yen, 10 yen and 10 yen (representing, respectively, 0.0%, 0.0%, 0.2%, 0.2% and 0.2% of NTT East's total FLET'S Hikari ARPU for the same periods).
Revenues from NTT East's "FLET'S VIRUS CLEAR" anti-virus software contributed, respectively, 10 yen, 20 yen, 20 yen, 30 yen and 20 yen to NTT East's FLET'S Hikari ARPU for the three months ended Jun. 30, 2008, Sept. 30, 2008, Dec. 31, 2008, and Mar. 31, 2009, for the fiscal year ended Mar. 31, 2009 and contributed 40 yen to NTT East's forecast FLET'S Hikari ARPU for the fiscal year ending Mar. 31, 2010 (representing, respectively, 0.2%, 0.4%, 0.4%, 0.5%, 0.4%, and 0.7% of NTT East's total FLET'S Hikari ARPU for the same periods).
Similarly, revenues from NTT West's "Security Function License Plus" anti-virus software option, which are part of NTT West's operating revenues from Supplementary Business, are included in the calculation of FLET'S Hikari ARPU for NTT West. Revenues from NTT West's "Security Function License Plus" software contributed less than one yen to NTT West's FLET'S Hikari ARPU for each of the three-month periods ended Jun. 30, 2007, Sept. 30, 2007, Dec. 31, 2007, Mar. 31, 2008, Jun. 30, 2008, Sept. 30, 2008, Dec. 31, 2008 and Mar. 31, 2009 and for the fiscal years ended Mar. 31, 2008 and Mar. 31, 2009. "Security Function License Plus" anti-virus software contributed less than one yen to NTT West's forecast FLET'S Hikari ARPU for the fiscal year ending Mar. 31, 2010. NTT West's Security Function License Plus revenues consist of fees paid by FLET'S Hikari customers for additional licenses to NTT West's anti-virus software. The initial license is included in the basic service package for the relevant FLET'S Hikari service.

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 FLET'S Hikari 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, the number of subscribers is determined using the number of lines for each service.

In terms of number 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 FLET'S Hikari ARPU, number of subscribers is determined based on number of FLET'S Hikari subscribers including B FLET'S and FLET'S Hikari Next (launched on Mar. 31, 2008) provided by NTT East and B FLET'S, FLET'S Hikari Premium, FLET'S Hikari Mytown and FLET'S Hikari Next (launched on Mar. 31, 2008) provided by NTT West.

We compute ARPU for our mobile business using three aggregate measures.

Mobile 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 basic 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 basic 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 basic 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 basic monthly charges and packet transmission charges attributable to our i-mode-related FOMA and mova services.

Mobile Aggregate ARPU (FOMA) = Voice ARPU (FOMA) + Packet ARPU (FOMA).

Our Voice ARPU (FOMA) is based on operating revenues related to voice services, such as basic monthly charges and voice transmission charges, and our Packet ARPU (FOMA) is based on operating revenues related to packet communication services, such as basic 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 basic monthly charges and packet transmission charges attributable to our i-mode-related FOMA services.

Mobile Aggregate ARPU (mova) = Mobile Voice ARPU (mova) + i-mode ARPU (mova).

Our Voice ARPU (mova) is based on operating revenues related to voice services, such as basic monthly charges and voice transmission charges, and our i-mode ARPU (mova) is based on operating revenues related to i-mode services, such as basic 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 number of all subscribers who have active mobile phones, regardless of whether the i-mode service is activated.
-	ARPU generated purely from i-mode is based on the number of active subscribers to the i-mode service only.

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

Number of active subscribers used in the ARPU calculation of NTT East and NTT West are as below.

-	1Q Results: Sum of number of active subscribers**(as defined below) for each month from Apr. to Jun.
-	2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.
-	3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.
-	4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.
-	FY Results : Sum of number of active subscribers** for each month from Apr. to Mar.
-	FY Forecast : the average expected active number of subscribers (number of subscribers at end of previous Mar. + number of expected subscribers at end of the following Mar.)/2×12

Number of active subscribers used in the ARPU calculation of NTT DOCOMO are as below.

-	1Q Results: Sum of number of active subscribers**(as defined below) for each month from Apr. to Jun.
-	2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.
-	3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.
-	4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.
-	FY Results/FY Forecast : Sum of number of active subscribers/expected number of active subscribers for each month from Apr. to Mar.

**	active subscribers = (number of subscribers at end of previous month + number of subscribers at end of the current month)/2