=SoftBank

SOFTBANK CORP.

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Mobile Communications Segment

Main Businesses

  • Mobile communications business
  • Operations related to mobile phone services,
    such as sales of mobile phone handsets

Core Company

  • SOFTBANK MOBILE Corp.

Key Segment Information


No.1 TV CM Preference in All Generation Segments*5(Fiscal 2009, among 9,472 brands)

This segment was newly established with the acquisition of Vodafone K.K. in fiscal 2007. Immediately following the acquisition, the business formulated “Four Commitments” that it has pursued to quickly raise its competitiveness: (1) 3G Network Enhancement; (2) 3G Handset Enhancement, with innovative designs and functions; (3) Mobile Content Enhancement; and (4) Sales Organization and Branding Enhancement. In terms of 3G Network Enhancement, surveys show a steady improvement in the network experience for users.

This is the result of the increase in 3G base stations and the expansion of the network area executed after the acquisition. With regard to the three other commitments, efforts to build these into “SOFTBANK's*1 strengths” that surpass competitors have led to SOFTBANK's being No. 1 in net subscriber additions*2for the two consecutive years from fiscal 2008. Over the period from fiscal 2007, the year of the Vodafone acquisition*3, to fiscal 2009, the segment's EBITDA*4has grown 1.3-fold and the EBITDA margin has risen to 25.8% from 22.3%.

Please refer to the link below for more details.

[Notes]
  • *1Within this section “SOFTBANK” refers to the SOFTBANK Group, whereas “SoftBank” stands for SOFTBANK MOBILE’s mobile phone brand.
  • *2Calculated by SOFTBANK based on Telecommunications Carriers Association statistical data.
  • *3SOFTBANK MOBILE was added to the scope of consolidation in May 2006, making an 11-month contribution to fiscal 2007 results.
  • *4EBITDA = operating income + depreciation and amortization (including amortization of goodwill), and loss on disposal of fixed assets included in operating expenses. EBITDA margin = EBITDA / net sales.
  • *5CM DATA BANK, monthly survey targeting 3,000 consumers for TV commercial preference.

Fundamental Strategy

With regard to the commitment of 3G Network Enhancement, the bulk of large-scale equipment enhancement is seen as mostly completed, and efforts are now shifting indoors and to other pinpoint-type locations. SOFTBANK MOBILE is addressing the three other commitments by further pursuing a solid reputation by which customers recognize that “‘Internet Machine’ means SoftBank,” “FMC*6means SoftBank,” and “Mobile content means SoftBank.”

Progress Under the “Mobile Handset Strategy”
— Accelerating Move to Internet Machines

Following the release of the Internet Machine SoftBank 922SH (manufactured by Sharp) in March 2008, SOFTBANK MOBILE released the iPhone 3G (manufactured by Apple Inc.) in July and the AQUOS Mobile FULLTOUCH SoftBank 931SH (manufactured by Sharp) in November of the same year. The powerful iPhone 3GS (manufactured by Apple Inc.) was also launched in July 2009. These have all been hit products that allow users to fully enjoy the Internet via their mobile phone.

Progress Under the “Content Strategy”
— Content Enhancement for Mobile Internet

The top page of the Yahoo! Keitai exclusive portal for SoftBank mobile phones, which allows users to access the infinite world of the Internet by simply pressing the Y! button, was renewed in July 2008, making it even easier to access Yahoo! JAPAN’s popular services and the latest news.

In addition, the MOBILE WIDGET was introduced in November 2008. This shows up as an icon on the mobile phone’s standby screen and provides quick access to the latest information and content. Beginning with the SoftBank 931SH, four MOBILE WIDGET-compatible models were launched in the spring of 2009. New video services are also being developed for the mobile Internet, including the comedy video contest S-1 BATTLE.

Progress Under the “Marketing and Branding Strategy”
— Successively Introducing FMC Services and Strengthening
the Corporate Customer Base


Expanding Corporate Customer Base (FYE 2007 number of corporate contracts = 100)

SOFTBANK MOBILE has gained the solid support of customers by successively offering innovative services that overcome conventional industry standards, including being the first in the industry to offer installment sales for mobile phone handsets and by introducing easy-to-understand pricing structures like the White Plan. The leading position gained from being an innovative pioneer is now being extended to the area of FMC services. Beginning with the White Call 24 discount service that offers free domestic calls 24 hours a day between users of SoftBank mobile phones (White Plan) and SOFTBANK BB's BB Phone (050 prefix), SOFTBANK MOBILE has made a major contribution to the promotion of FMC with a number of new services, including White Line 24 for free domestic calls 24 hours a day between SOFTBANK TELECOM's OTOKU Line users, and White Office, which allows mobile phones to be used as extension lines.

While continuing to enhance services for individuals, the beginning of an emphasis on strengthening the corporate customer base during fiscal 2009 marked a major shift of strategic direction. In addition to White Call 24 and White Office, security functions performed by a local administrator and tighter control functions have been introduced as optional services for corporations, and this higher-added-value is leading to an increase in the number of corporate contracts.

[Notes]
  • *6 Fixed Mobile Convergence.
  • * “FY2009” refers to SOFTBANK's fiscal year ended March 31, 2009, and other fiscal years are referred to in a corresponding manner on this page.
  • * The content of this page is based on information included in the ‘Annual Report 2009’.
  • * iPhone is a trademark of Apple.
  • * The trademark “iPhone” is used with a license from Aiphone K.K.