NTT Shareholder Meeting Addresses Docomo Quality Concerns and IOWN Progress

NTT held its 41st annual general meeting of shareholders on June 18, 2026, where executives outlined measures to improve the mobile network quality of its subsidiary NTT Docomo and provided updates on the next-generation optical communication initiative, the Innovative Optical and Wireless Network (IOWN). The meeting saw sharp questions from shareholders regarding service quality, customer service issues, and the company's lagging stock price.

On network quality, NTT reported that it added 12,000 base stations last fiscal year as part of a renewed focus on mobile communications. The company stated that the percentage of locations in major city centers achieving over 100 Mbps during peak hours has increased, and connectivity on key rail lines such as the Yamanote Line and Osaka Loop Line has significantly improved. For the current fiscal year, NTT plans to deploy more base stations than last year and will leverage frequencies freed up by the termination of 3G services, along with AI-driven traffic optimization.

Shareholder questions highlighted ongoing frustrations with Docomo’s customer service. One shareholder recounted an experience at a Docomo shop where a sales representative pushed the "d Card GOLD" credit card without proper explanation or consent. NTT Docomo Vice President Natsuko Fujishiro apologized for the lack of transparency and promised to improve group-wide customer handling procedures. Concerns were also raised about the complex fee structure of the "0570" prefix used for corporate inquiries.

Regarding the IOWN roadmap, NTT executives said the All-Photonics Network (APN) and optical-electronic fusion devices will be prioritized for societal implementation. APN is expected to reach all prefectural capitals by fiscal 2027, with nationwide expansion targeted by 2030. Commercial provision of the board-to-board interconnect device "PEC-2" is scheduled within fiscal 2026, with collaborations planned with global semiconductor firms such as Broadcom and hyperscalers to broaden the ecosystem. When asked about competition from well-funded companies like NVIDIA, NTT Vice President Akira Hoshino expressed confidence, stating that the company is leading the field, noting that many players have now entered the space once considered unnecessary.

Responding to a shareholder proposal to improve stock performance—including suggestions to offer "Docomo Hikari" for free to shareholders or for executives to forgo dividends—NTT Vice President Takashi Hiroi stressed that the company already maintains a high total return ratio through dividend increases and regular share buybacks. He acknowledged the current low stock price is taken seriously by management. He emphasized that the primary driver for stock appreciation will be earnings growth, supported by continued investment in AI, data centers, and financial services, while the mobile business is stabilized with improved profitability.