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Japan-Update

Docomo and KDDI profits level off on promotional spending

Major carriers offer discounts and reward points to fight budget rivals

Big mobile carriers are offering perks to win new customers and hang on to existing ones.

TOKYO -- NTT Docomo and KDDI, two of Japan's three major mobile operators, have been struggling to increase profits as they spend to keep customers from defecting to low-cost competitors.

Docomo's operating profit for the April-December period apparently edged down to around 830 billion yen ($7.65 billion). KDDI's profit likely rose slightly, to roughly 790 billion yen. The virtually flat showings mark a significant slowdown from a year earlier, when both carriers posted growth of about 20%.

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