NTT DoCoMo Inc. said Friday its operating profit in the April-June quarter dropped 25.2 percent from a year earlier to 203.9 billion yen amid an intensifying price war with its rivals.

The company also announced it will cut its monthly fees by 50 percent for users who sign up for two-year contracts starting in late August to keep pace with discounts rates announced earlier by rivals KDDI Corp. and Softbank Corp.

Japan's largest wireless operator reported quarterly net profit of 122.8 billion yen, down 24.9 percent. Sales declined 2.9 percent to 1.18 trillion yen.