Japan’s NTT DoCoMo is reorganizing its business structure and establishing a number of new business units as part of an initiative to achieve its medium-term revenue targets.
The organizational changes, which will take effect on July 1, include the creation of a new broadband business department and a new sales and marketing division.
The former will focus on developing optical fiber broadband services, including its new Hikari service, and linking with its mobile businesses.
The latter will comprise four existing departments – strategic marketing, sales promotion, frontline support, and billing service, tasked with generating new revenues for mobile business and driving consumer-targeted sales promotions.
The Smart-life business division, established in 2013, will reorganize its two existing departments with new focus.
The online marketplace will become the consumer business department, with its focus shifting on consumer-oriented initiatives and e-commerce. The content business will be renamed the platform business unit and will focus on business-to-, business to-consumer (B2B2C) business opportunities as well as security-related solutions.
Meanwhile the M2M unit under the corporate sales and marketing division will be named the IoT business department, and the solution business unit will be changed to the solution service department.
DoCoMo said the new structure is aimed at strengthening the telco’s competitiveness in the mobile communications businesses and drive further growth in its smart-life businesses.
Separately rival Softbank has also announced a number of changes to initiate its transformation towards becoming a stronger global player.
The Japanese conglomerate will be changing its company name to SoftBank Group Corp to consolidate all its current assets, including SoftBank Mobile, Yahoo Japan Corporation, and Alibaba Group Holding Limited under the same roof.
Softbank has also named Nikesh Arora, currently vice chairman of SoftBank, as the representative director and president & COO effective June 19, 2015.
Masayoshi Son will continue to be chairman and CEO of SoftBank, while Ken Miyauchi is president & CEO of SoftBank Mobile Corp., the domestic telecom business, the company said in a statement.
“Many tech companies face a decline after thirty years due to evolving technologies, changing business models and overreliance on founders. To create a sustainable growth business for centuries to come, we must transform our current operating assets and take a systematic approach to supporting our group of disruptive entrepreneurs,” Son said in the statement.
“As president of SoftBank Group, Nikesh will work with me to drive the transformation of SoftBank as it enters a new phase.”