Japanese NT DoCoMo writes off 3G assets
Japanese mobile operator NTT DoCoMo has announced that it is to write off a significant proportion of its foreign 3G assets following losses incurred on them.
The total amount to be written off is valued at YEN573bn (€4.72bn), a combination of losses incurred from the devaluation of the value of its stake in AT&T Wireless, Dutch KPN Mobile and Hutchinson Whampoa.
The announcement has not come has a surprise, although it has served as a further blow to the sentiment surrounding 3G services. Recently, KPN pulled out of its 3G plans, including a 15% stake it held in Hutchinson Whampoa's 3G service bid in the UK.
KPN wrote down a charge of €9bn as a result. Spanish company Telefonica and Finnish counterpart Sonera also dropped their 3G plans in several European cities.
Several of the operators who still hold on to their 3G assets have also admitted that they may write down some of the cost with several already delaying the roll out of the service.
DoCoMo problems do not only exist in its overseas assets as the company has had to scale down the number of new customers it expects to sign up for its own 3G service by up to 70%.
