NTT Looking to Growth From NTT Data and NTT DoCoMo Recovery

NTT is an anomaly in the telecom world. It owns a world-class wireless business in NTT DoCoMo, but its fixed-line business struggled to generate a decent return on investment for many years. NTT consolidated NTT DoCoMo in 2021, and it has spent several years generating synergies from this in areas such as merging management, network synergies from the cellphone business using some of NTT’s fixed-line core network and backhaul transmission, alignment of research and development activities, and cross-selling synergies. NTT DoCoMo also made several decisions to lower pricing in 2014, 2019, and 2021 that had a significant impact on its earnings. However, with NTT having taken over the remainder of NTT Data, we see further potential synergy and cost-reduction opportunities which should help offset the effects from what has been at times a difficult mobile market.