Profits at Japanese mobile giant NTT DoCoMo are set to miss forecasts as the firm ditches one of its phone networks.
DoCoMo runs three mobile systems: its fast-growing third generation network, its regular mobile network and a low-cost, low range service called PHS.
The no-frills PHS was once the main driver of the firm's success, and was far more popular than normal mobiles.
But with usage falling steadily, DoCoMo is now scrapping PHS at a cost of 61bn yen ($585m; £304m).
The effect of its decision, DoCoMo said, would be to pull operating profits for the group down to 769bn yen for the year to March 2005 from an earlier prediction of 830bn yen.
The firm said it would accept no more PHS subscribers from the end of April onwards. It is expected to withdraw from PHS altogether within two years.
Past its peak
When launched in 1994, PHS was much cheaper than normal mobile networks - which in Japan run on a standard called PDC which is similar to but incompatible with the GSM system which most networks in the world use.
By 1997 - at its peak - the PHS standard was Japan's most popular, with seven million users.
But prices for PDC services have since dropped sharply, and the newer 3G services have proved popular.
PHS's technical limitations - which include lost connections if the user is in a fast-moving vehicle and few add-on services - can no longer compete.
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