Investor Presentaiton
III-5. Network Services (2) Cost of Revenues
Circuit-related costs (Internet backbone, WAN lines etc.)
Outsourcing-related costs (mobile infrastructure related costs such as
interconnectivity charge and voice communication services,
outsourcing personnel costs etc.)
Others
Personnel-related costs (NW services related engineers' personnel cost)
Network operation-related costs (depreciation cost for network
equipment, data center leasing costs etc.)
|
FY20: 99,656 [-2.4%]
FY21: 92,594 [-7.1%]
24,943 24,953 24,305 25,455 23,145 23,609 21,899 23,942
6,152 6,189 6,396 6,636
I
6,432
6,823
6,402
6,497
9,974
9,927 9,181
9,737 i
7,309
7,089
7,132
5,752
Unit: (JPY) million
[ ], YoY = Year over year comparison
FY21 Circuit-related costs increased by 3.1%, +¥0.78 billion YoY, along
with WAN revenue increase
Internet backbone circuit cost remains stable as we can leverage scale
merit by having one of the largest Internet backbone networks
➤ FY21 Outsourcing-related costs decreased by 29.7%, -\11.54 billion YoY
mainly because costs related to voice purchasing and mobile data
interconnectivity decreased
•
•
Voice purchasing cost (unit charge) was revised lower at the beginning of
FY21 and Sep. 2021 (switched to auto-prefix appending in Sep.)
3Q21 Outsourcing-related costs reflect onetime cost reduction impact of
Docomo's FY20 mobile interconnectivity cost (unit charge) revision
➤ FY21 Others increased by 44.8%,+\3.20 billion YoY as it included an
increase in mobile device purchase
.
.
FY21 purchasing cost of mobile device increased by ¥1.91 billion YoY
Breakdown: 1Q: up ¥0.52 billion, 2Q: up ¥0.72 billion, 3Q: up ¥0.48 billion,
4Q: up ¥0.19 billion
Regarding mobile data interconnectivity cost recognition:
(Mobile Network Operator's mobile infrastructure cost)
•
1,691 1,697 1,765
1,803 1,861 1,752
2,529
1,987
1,853 1,868 1,930
2,734
2,455
2,620
1,943
1,994
.
5,324 5,278 5,211
5,242 5,214 5,204
5,252
5,417
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
As for our FY22 usage charge, from 1Q22, we plan to apply ¥20,327 per
Mbps as a unit charge which was disclosed by Docomo in Mar. 2022. The
charge is lower than ¥22, 190 which was disclosed by Docomo in Apr. 2021.
Both charges were based on Docomo's future cost method.
As for our FY21 usage charge, from 1Q21, we applied ¥28,385 per Mbps as
a unit charge, decrease of 23.9% from the previous year's charge, which
was disclosed by Docomo based on the future cost method in Apr. 2021.
The charge is to be fixed in late Dec. 2022. No onetime cost reduction upon ¦
the charge finalization is taken into consideration for FY22 financial targets.
As for our FY20 usage charge, from 1Q20, we applied ¥41,436 per Mbps as
a unit charge which was disclosed by Docomo based on the future cost
method. This unit charge was fixed in late Dec. 2021 to ¥37,280 which is a
decrease of 12.7% from the previous year's charge. Onetime cost reduction
of slightly more than ¥1.0 billion was recorded in 3Q21.
As for our FY19 usage charge, we used ¥42,702 per Mbps (decrease of
13.4% from the previous year's charge) as a unit charge, which was fixed in
Jan. 2021. We recorded onetime cost reduction due to the difference
between the fixed unit charge and our estimated unit charge were as
follows: 3Q20: ¥0.70 billion, 4Q20: ¥0.39 billion.
Internet Initiative Japan Inc.
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