NTT DoCoMo to post higher Q1 oper profit - Nikkei

TOKYO, July 26 (Reuters) - NTT DoCoMo Inc's (9437.T: Quote, Profile, Research, Stock Buzz) quarterly operating profit has likely risen substantially from a year ago due to smaller subsidies paid to retailers to keep cellphone prices low, the Nikkei business daily said.

Operating profit at Japan's No.1 mobile phone operator is expected to have come in between 250 billion yen and 300 billion yen ($2.3 billion-$2.8 billion) in the fiscal first quarter to June, up from 203.9 billion yen a year earlier, the paper said on Saturday.

For years, DoCoMo and other Japanese wireless carriers had kept handset prices low to win customers and tried to recoup heavy costs through calling and other service fees.

But NTT DoCoMo last November introduced a new sales strategy that lowered calling fees and raised handset prices, reducing the burden of subsidy payments to retailers. No NTT DoCoMo officials were immediately available for comment.

The company, which competes with KDDI Corp (9433.T: Quote, Profile, Research, Stock Buzz) and Softbank Corp (9984.T: Quote, Profile, Research, Stock Buzz), is set to report quarterly results on Wednesday. ($1=107.85 Yen) (Reporting by Kiyoshi Takenaka; Editing by Lincoln Feast)