NTT (9432.T): New pricing announcement - Timing of existing mobile plan price hikes a positive surprise

NTT held a new mobile pricing announcement at 14:00 JST on September 25. Against the backdrop of inflation and expanded investment in networks and security, the company announced price hikes for existing mobile plans. Since NTT had been gradually becoming more positive toward raising prices for existing plans (see our report), the price hikes themselves are not a major surprise, but we are upbeat about the announcement and implementation coming earlier than we had expected. The company plans to implement price revisions from December 2026 (affecting c.75% of users), and based on our estimates, we expect an earnings contribution of c.¥30 bn (four months) in FY3/27, and a revenue boost of around ¥90 bn (12 months, +¥60 bn yoy) versus current prices in FY3/28. With the price hikes, the likelihood of mobile communications revenue, momentum in which has been sluggish, turning back to growth should rise substantially. The price rises will also be an upside factor vs guidance (partially facto