21 July, 2005

NTT DoCoMo, Inc.

DoCoMo’s 3G Strategy

1

2005�3������ US GAAP

Operating RevenueOperating Revenue

Operating IncomeOperating Income

Net Net IncomIncom

EBITDAEBITDA

EBITDA MarginEBITDA Margin

Free Cash FlowFree Cash FlowExcl. cash managementExcl. cash management

IncomIncom before income taxesbefore income taxes

2005/3�Full Year)US GAAP (1)

2005/32005/3��Full Year)Full Year)US GAAP (1)US GAAP (1)

4,844.64,844.64,844.6

784.2784.2784.2

747.6747.6747.6

1,625.71,625.71,625.7

33.633.633.6

1,288.21,288.21,288.2

2004/32004/3��Full YearFull Year��US GAAP (2)US GAAP (2)

5,048.15,048.1

1,102.91,102.9

650.0650.0

1,858.91,858.9

36.836.8

1,101.11,101.1

1,003.61,003.61,003.6 862.9862.9

ChangesChanges(2)(2)→→(1)(1)

--4.0%4.0%

--28.9%28.9%

15.0%15.0%

--12.5%12.5%

--3.2 points3.2 points

17.0%17.0%

16.3%16.3%

FY2004 Financial Results HighlightFY2004 Financial Results Highlight

�Billions of Yen�

2

Mobile Phone Market in JapanMobile Phone Market in JapanMobile Phone Market in Japan

56.156.1��22.522.5��

17.317.3��

*Source: Telecommunications Carriers Association (TCA)

Market ShareMarket ShareMarket Share

61,136

69,34975,944

81,921

36,21941,011 44,149 46,328

20013 20023 20033 20043 20053

Total subscribersDocomo subscribers

�x1000�

4.14.1��86,998

48,825

Penetration rate 68.1�

Cellular Phone Market in JapanCellular Phone Market in Japan

NTTNTTDoCoMoDoCoMo

auau

VodafoneVodafone

TUTU--KAKA

3

Changes in Subscribers to PDC and FOMA Services

1993/3 1994/3 1995/3 1996/3 1997/3 1998/3 1999/3 2000/3 2001/3 2002/3 2003/3 2004/3 2005/3E

(Thousand subscribers)

40,000

30,000

20,000

10,000

800M Digital800M Digital--System Service System Service

launchedlaunched

3G (3rd3G (3rd--Generation FOMA)Generation FOMA)2G2G--band Wband W--CDMA SystemCDMA System

2G (2nd2G (2nd--Generation mova)Generation mova)800M800M--band Personal Digital Cellular band Personal Digital Cellular

(PDC)(PDC)

1G Analog 1G Analog SystemSystem

Enrichment of Enhanced Handsets, Service Areas and Content

Enrichment of Enhanced Handsets, Service Enrichment of Enhanced Handsets, Service Areas and ContentAreas and Content

FOMA Subscribers Catching up mova in 2006FOMA Subscribers Catching up mova in 2006FOMA Subscribers Catching up mova in 2006

- Steady Migration to 3G Services- FOMA Service topped 14 million Subscriptions as of July, 2005-- Steady Migration to 3G ServicesSteady Migration to 3G Services-- FOMA Service topped 14 million Subscriptions as of July, 2005FOMA Service topped 14 million Subscriptions as of July, 2005

FOMA service FOMA service lanunchedlanunched

4

Cell Phone moving into 3rd HighCell Phone moving into 3rd High--Growth PhaseGrowth Phase

20 million

40 million

““Anytime, Anywhere, with AnyoneAnytime, Anywhere, with Anyone”” (Voice)(Voice)

From From ““VolumeVolume”” to to ““ValueValue”” (Internet Connection)(Internet Connection)

““Cell Phone for More Usability in Cell Phone for More Usability in EverydayEveryday--Life and BusinessLife and Business””Subscribers

* As of End May 2005

'96 '97 '98 '99 '00 '01 '02 '03'95 '04 �'94

Number of i-mode Service Subscribers

Number of Cell Phone Subscribers

Outright Purchase System

commenced (94/04)

i-mode Service launched (99/02)

49.3 million*44.5 million*

12.9 million*High-Definition Display

Camera (Mega-Pixel)

External Memory

Infrared Contactless IC

Barcode Reader

Communications Infrastructure

Communications Infrastructure IT InfrastructureIT Infrastructure

FOMA Service launched (01/10)

Daily-Life Infrastructure

Daily-Life Infrastructure

5

Key Drivers for 3G Success

Network

ServicesHandsets

9

6

60

22

91

404020023 20023 20033 20033 20043 20043 2005320053 2006320063��EstimateEstimate��

[Outdoor]Pop Coverage (%)

100100

8080

6060

4040

2020

00

5,0005,000

4,0004,000

3,0003,000

2,0002,000

1,0001,000

0040 70 150

99

3,800

99.9

Indoor Coverag

e(No. of

systems)

2,000

1,670

FOMA Coverage Expansion[Indoor]

No. of indoor systems

MetropolitanMetropolitanareaarea

service service launchlaunch

2001/102001/10

NationwideNationwideserviceservicelaunchlaunch2002/42002/4

Outdoor Pop.Coverage

2,300

2,800

10

7

Area Development through Selection of Optimum Base Stations matching Each Installation Environment

��� ��� ���

[Small-scale Small-volume Traffic] Coaxial System

Leased Circuit CoaxialBranching Unit

���

������

���

[Large-scale Large-volume Traffic] Optical Transmission System

��� ��� ���Host

StationAccess Station

Optical Cable

���

���

���

���

8 Branches or so

1 Sector 32 Access Stations (Typical Example)

Configuration of IMCS Base Station

Leased Circuit

Branching Unit

Branching Unit

Access StationAccess Station

���

���

Antenna

Underground Area

Leased Circuit

8

LargeMid-size BuildingsLargeMidLargeMid--size Buildingssize Buildings

Implementation of Micro Base Station, HighImplementation of Micro Base Station, High--Power MOF, LongPower MOF, Long--Haul MOFHaul MOF*MOF: Multi-drop Optical Feeder

Small BuildingsSmall BuildingsSmall Buildings

Standard Type

(High-Power MOF)

Standard TypeStandard Type

(High(High--Power MOF)Power MOF)

ConsolidatedLarge-scale Type(Enhanced MOF)

ConsolidatedConsolidatedLargeLarge--scale Typescale Type(Enhanced MOF)(Enhanced MOF)

SmallMid-size Type

(Micro Base Station)

SmallMidSmallMid--size Typesize Type

(Micro Base Station)(Micro Base Station)

ConsolidatedSmall-scale Type(Long-haul MOF)

ConsolidatedConsolidatedSmallSmall--scale Typescale Type(Long(Long--haul MOF)haul MOF)

FOMA BoosterFOMA BoosterFOMA Booster

HighHigh--PowerPowerMOFMOF

PDC FOMAPDC FOMA

Sharing of existing PDC optical cables and

reduction in number of antennas

Sharing of existing PDC Sharing of existing PDC optical cables and optical cables and

reduction in number of reduction in number of antennasantennas

Consolidated installation of BTS

Consolidated installation Consolidated installation of BTSof BTS

Miniaturization of Base Stations for saving spaceMiniaturization of Base Miniaturization of Base

Stations for saving spaceStations for saving spaceConsolidation of

Base StationsConsolidation ofConsolidation of

Base StationsBase StationsIndoor signals relayed to

Base StationsIndoor signals relayed to Indoor signals relayed to

Base StationsBase Stations

Extension UnitExtension Unit

FOMAFOMA(Micro(Micro--size)size)

MOF PDCMOF PDCFOMA FOMA

BoosterBooster

Enhancement of FOMA Service Area Quality

HighHigh--PowerPowerMOFMOF

LongLong--haulhaulMOFMOF

Outdoor Outdoor Base Base

StationStation

9

[Area Deployment only with 2GHz-BTS] [Area Deployment with 800MHz-BTS]

[PDC Area (800MHz)]

Area Complementation Area Complementation

No need for Dedicated Stations

2GHz-dedicated Station 2GHz-dedicated Station

PDCIMT-juxtaposition Station

2GHz BTS Area

PDC Area

800MHz BTS Area

Low-cost and PDC-quality Area Deployment planned with 800MHz Base Stations

Smaller Propagation Loss with 800MHz than 2GHz, resulting in Wider Areas

*Installable only in areas free of interference with operating frequencies at existing PDC stations

Rural Area Deployment through 800MHz System

10

2003/3 2004/3 2005/3

10.8%

40.1%

PHS

28.6%

8,540

10.5%

48.6%

23.9%

8,055

8.9%

6.6%8.8%

10.7%

(Unit: 100 million yen)

Common Infrastructure (telecom buildings, etc.)Quick-Cast (Paging system)PHSFOMAi-mode, etc.PDCTransmission Lines

Cell Phone Business

PHS 1.5%

6.9%

59.4%

19.4%

8,550

9.4%

4.2%

PHS 0.7%

Common Infrastructure (telecom buildings, etc.)

FOMA

i-mode, etc.

PDC

Transmission Lines

PHS 1.0%

(reference) Capital Expenditures for recent 3 years

11

- Started in Jun 2004, and number of subscriber hit 2.7 million as of Mar 2005- About 25% of FOMA i-mode subscribers using this money-saving service-- Started in Jun 2004, and number of subscriber hit 2.7 million aStarted in Jun 2004, and number of subscriber hit 2.7 million as of Mar 2005s of Mar 2005-- About 25% of FOMA iAbout 25% of FOMA i--mode subscribers using this moneymode subscribers using this money--saving servicesaving service

Subscribers to Pake-Houdai Service (Flat-rate Packet)

Pake-HoudaiMonthly Flat-rate Packet

Communications System for \3,900 to allow you to send as many packets as you like, covering the i-mode Service including of i-mode Mail

12

1,000

�

2,000

3,000

4,000

5,000

Changes in the Number of Packets (Number of packets/dayChanges in the Number of Packets (Number of packets/day--person)person)

Number of Packets per Day per Person –PDC [Monthly Average]

Number of Packets per Day per Person –FOMA [Monthly Average]

Num

ber o

f Pac

kets

use

d pe

r Day

(Pac

kets

Pers

on)

August99

Increasing Data Traffic

August00

August01

August02

August03

August04

February99

February00

February01

February02

February03

February04

13

Data

Tran

smiss

ion S

peed

[bps

]

1992 2000

10M

1M

100k

10k

2G

2M

W-CDMA

Approx. 14M

2-4M

Peak

3GaverageMAX spec.

1k1995 2005 …….

384k

2.4kPDC

9.6k

PDC

28.8k

PDCPacket

32k

PHS

64k

PHS

HSDPA

100M 4G

Ever-Increasing Communications Bit Rates (Data Transmission)

14

FOMA Packet Communication AreaFOMA Packet Communication Area384kbps maximum384kbps maximum

HSDPA AreaHSDPA Area14Mbps maximum14Mbps maximum

Image of Deployment for HSDPA Introduction

15

● Increasing Number of WORLD CALL Users [Destinations: Approx. 220 nationsregions]● Increasing Number of Roaming-out Service Users (WORLD WING, WORLD WALKER)

Roaming-in Service launched [Voice and AV: May 2005, Packet and SMS: June 2005]�900iG (FOMA/GSM) Service launched [December 2004]� Increasing Number of Roaming Partner Carriers

●● Increasing Number of WORLD CALL Users [Destinations: Approx. 220Increasing Number of WORLD CALL Users [Destinations: Approx. 220 nationsregionsnationsregions]]●● Increasing Number of RoamingIncreasing Number of Roaming--out Service Users (WORLD WING, WORLD WALKER)out Service Users (WORLD WING, WORLD WALKER)

RoamingRoaming--in Service launched [Voice and AV: May 2005, Packet and SMS: Junin Service launched [Voice and AV: May 2005, Packet and SMS: June 2005]e 2005]��900iG (FOMA/GSM) Service launched [December 2004]900iG (FOMA/GSM) Service launched [December 2004]�� Increasing Number of Roaming Partner CarriersIncreasing Number of Roaming Partner Carriers

EuropeEurope

AfricaAfricaMiddleMiddle--EastEast

AsiaAsia

OceaniaOceania

North AmericaNorth America

Latin AmericaLatin America

2003/12E 2004/3E 9E

Number of WORLD WING/WORLD WALKER Users

Number of NationsRegionsunder Roaming Service Coverage

100

50

60,000

30,000 WALKER

WING

2004/4-6(1Q) 2004/7-9(2Q)

122 nations regions122 nations regionsAs of Jun 2005As of Jun 2005

6E

Promotion of Global Businesses (1)

16

Sum total of subscribers to operators providing i-mode service worldwide topped 190 millionNations/regions i-mode service coverage (including Japan): 22 (including 12 scheduled nations/regions)-Conclusion of i-mode licensing deal with MTS in Russia (December 2004)-Conclusion of i-mode licensing deal with StarHub in Singapore (January 2005)

Functional enhancement and broader product lineup of overseas i-mode handsets-Provision of i-mode handset with “3Dstandby i-appli” capabilities (marketed in December 2004)-Participation of leading overseas handset vendors: Samsung (Sep 2004) , LG (Nov 2004), Motorola (Apr 2005) etc.

Sum total of subscribers to operators providing iSum total of subscribers to operators providing i--mode service worldwide topped 190 millionmode service worldwide topped 190 millionNations/regions Nations/regions ii--mode service coverage (including Japan): 22 (including 12 schedumode service coverage (including Japan): 22 (including 12 scheduled nations/regions)led nations/regions)-- Conclusion of iConclusion of i--mode licensing deal with MTS in Russia (December 2004)mode licensing deal with MTS in Russia (December 2004)-- Conclusion of iConclusion of i--mode licensing deal with StarHub in Singapore (January 2005)mode licensing deal with StarHub in Singapore (January 2005)

Functional enhancement and broader product lineup of overseas iFunctional enhancement and broader product lineup of overseas i--mode handsetsmode handsets-- Provision of iProvision of i--mode handset with mode handset with ““3Dstandby i3Dstandby i--appliappli”” capabilities (marketed in December 2004)capabilities (marketed in December 2004)-- Participation of leading overseas handset vendors: Samsung (Sep Participation of leading overseas handset vendors: Samsung (Sep 2004) , LG (Nov 2004), Motorola (Apr 2005) etc.2004) , LG (Nov 2004), Motorola (Apr 2005) etc.

Nations and Regions where i-mode Service is already Available (10 nations and regions)Nations and Regions where i-mode Service is Scheduled for Provision (12 nations and regions)

Changes in Number of Subscribersat Each i-mode Alliance Partner

Changes in Number of SubscribersChanges in Number of Subscribersat Each iat Each i--mode Alliance Partnermode Alliance Partner

200

150

100

50

Time of entering Time of entering PartnershipPartnership

KPN

KPN

-- M, B

ASEM

, BASE

DoC

oMo

DoC

oMo

FETFET

EE-- PlusPlus

Boogies

Boogies

TelephonicTelephonic

WIN

DW

IND

CO

SMO

TEC

OSM

OTE

TelstraTelstra

Cello

Cello

mom

mom

MTS

MTS

01/6 01/11 02/2 02/4 02/7 03/6 03/11 04/6 04/11 04/11 04/12 05/1

200

150

100

50

0

Number of Subscribers (million)

2

�

StarH

ubS

tarHub

Promotion of Global Businesses (2)

Number of Subscribers (million)

Documents for “Study Group to Examine Expanded Use of

Frequency Bands for Mobile Services

18

(10 thousand)

����

�,���

�,���

�,���

�,���

�,���

�,���

�,���

�,���

800MHz PDC System Service startedMarch 1993March 1993

1.5GHz PDC System Service startedApril 1994April 1994

2GHz IMT-2000 System (W-CDMA) Service startedOctober 2001October 2001

Packet Communications Service startedMarch 1997March 1997

i-mode Service startedFebruary 1999February 1999

PDC Half-Rate System Service startedDecember 1995December 1995

Frequency Width

Number of Subscribers

As of End September 2004

DoCoMo���

DoCoMo���

Other Carriers���

Other Carriers���

1994 1995 1996 1997 1998 1999 2000 2001 2002 20031993 End September

2004

Changes in Number of Mobile Phone SubscribersChanges in Number of Mobile Phone Subscribers

Percentage Frequency Width used by DoCoMo Percentage Frequency Width used by DoCoMo Percentage Number of SubscribersPercentage Number of Subscribers

DoCoMo 2nd Generation (Personal Digital Cellular: PDC)

DoCoMo 3rd Generation (W-CDMA)

DoCoMo 1st Generation (Analog)

Implementation StoryImplementation Story

Entire Mobile Phone Market

Changes and Current Status of Mobile Phone Subscription (1)

19

�

5000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000(Thousand)

20032002200120001999199819971996199519941993

20

40

60

80

100

0

(MHz)

Number of PDC SubscribersFrequency Width used for PDC

Changes and Current Status of Mobile Phone Subscription (2)

20

0

100

200

300

400

500(Thousand)

50

100

150

200

250

0

(MHz)Number of Subscribers per MHzAssigned Frequencies

France(GSM)

Germany(GSM)

Italy(GSM)

U.K.(GSM)

DoCoMo(PDC+FOMA)

40.39 million 64.80 million 36.40 million 52.99 million 45.36 millionNumber of Subscribers

Number of Subscribers per MHz – Comparison with European Nations

21

0

10

20

30

40

50

60

70

80

90

100���

20,000

15,000

10,000

5,000

01994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Estimated

Number of Base Stations (Outdoor) – FOMANumber of Base Stations (Outdoor) – PDC

Percentage Population Coverage – FOMAPercentage Population Coverage – PDC

Increase in Service Areas and Service Availability

22

Example of Tokyo 23 Wards (PDC)

<Small Zone Achievements>Average inter-BS distance of 15 Base Stations around JR Sinuous Station = 450mAverage inter-BS distance of 14 Base Stations around JR Sinuous Station = 350m

<Small Zone Achievements>Average inter-BS distance of 15 Base Stations around JR Sinuous Station = 450mAverage inter-BS distance of 14 Base Stations around JR Sinuous Station = 350m

Current Status of Implementing Smaller ZonesCurrent Status of Implementing Smaller ZonesCurrent Status of Implementing Smaller Zones

Smaller zones have been sought to the extreme for efficient use of spectrum those areas with heavy traffic in Tokyo 23 wards.Implementing such smaller zones entail very irregular BS arrangement, causing some greater probability of inter-BS interference to place massive workload on the frequency allocation design.Sinuous downtown areas have some very small zones with their BS area radius (cell area radius) being less than 100m. Smallerzones than this are thought impossible in terms of the radio system implementation because of incapability of handover while moving.

: One Base Station Area(Legend)

Promotion of Smaller Zones for Efficient Use of Spectrum

23

(Thousand)

100

0

200

300

400

500

600

700

1995 1996 1997 1998 1999 2000 2001 2002 2003

Number of Base Stations in Tokyo 23 Wards(Excluding in-building micro stations)

Number of Subscribers per MHz

200

0

400

600

800

1000

1200

1400(Number of Stations)

PDC Base Station and Spectrum Efficiency

24

1,200(Billion yen)

1,000

800

600

400

200

01996 1997 1998 1999 2000 2001 2002 2003 2004

Estimated199519941993

FOMAPDC

Smaller Zones

Elimination of Dead Zones in Subways and Buildings

Nationwide Deployment

Half-Rate System

Nationwide Coverage

Smaller Zones and Elimination of Dead Spots

Elimination of Dead Zones inSubways and Buildings

800MHz1.5GHz Dual Network

Major Equipment Deployment

Changes in Capital Expenditure

25

FDD System700MHz 800MHz 900MHz 1.5GHz 1.7GHz 2.0GHz 2.0GHz 2.5GHz

TDD System

FY2012 and Beyond

FY2011

FY20010

FY2009

FY2008

FY2007

FY2006

FY2005

FY2004

New FrequencyNew Frequency New FrequencyNew Frequency

New FrequencyNew Frequency New FrequencyNew Frequency

New FrequencyNew Frequency

Analog TV

Service Termination

Being Used by PDC and cdma2000

Being Used by PDC

Being Used by W-CDMA and

cdma2000- DoCoMo- KDDI

- DoCoMo- Tu-Ka- Vodafone

-DoCoMo-KDDI- Vodafone

Scheduled for Service

Commencement in FY2006

Usage under study in ITU

To be used in pair

Transition and Consolidation

New FrequenciesExisting Frequencies

Estimated Wider Use of Mobile Phone Spectrum

Scheduled for Service

Commencement in FY2006

26

800MHz Band Reallocation Overview (Image)800MHz Band Reallocation Overview (Image)

DoCoMo→

KDDI→

DoCoMo →KDDI→

KDDI↓

KDDI←

DoCoMo ←KDDI←DoCoMo↓ KDDI

↑DoCoMo↑

DoCoMo ←

Downlink UplinkPresent

����↑

DoCoMo↑

����↓

DoCoMo↓

DownlinkUplink

After Reallocation

↑ ↓ ↓↑

DownlinkUplinkUplink DownlinkJuly 2012 and Beyond

810

855

900905

958

715

768

815

845

830

860

890

875

700MHz-band 900MHz-band

New Allocation Policy

800MHz-band

MIC has determined its policy to allocate the IMT-2000 frequencies in the 800MHz band to existing carriers –DoCoMo and KDDI.MIC has determined its policy to allocate the IMTMIC has determined its policy to allocate the IMT--2000 frequencies in the 800MHz band to existing carriers 2000 frequencies in the 800MHz band to existing carriers ––DoCoMo and KDDI.DoCoMo and KDDI.

800MHz-band Frequency Reallocation

27

20

40

0

60

80

100

120

(Required Frequency Width: MHz)

Fiscal Year2004�H16� 2005�H17� 2006�H18� 2007�H19� 2008�H20� 2009�H21�

2GHz

1.7GHz

800MHz�

Wider Use of Frequencies

Prediction based on Telecommunications Technology Council Model

Required Frequency as predicted

Prospective of Frequencies Available for FOMA Capacity Increase