We will be a company leading the lifestyle in the 21st century.
The key is two domains, ‘Mobile Internet’ and ‘Asia.’ The SOFTBANK Group pursues an established position as an Internet company in Japan and at the same time we strive to clarify the path toward creating the ‘No. 1 Internet company in Asia.’
Basing our thinking on what services really benefit customers, SOFTBANK has been providing a range of revolutionary services that break down conventional industry practices. The swiftness inherent in this strength has supported growth that is unparalleled in the industry, propelling SOFTBANK to becoming one of the world's leading Internet companies in just 28 years since the Company was founded.
Comparison of EBITDA Growth Among Japan's
3 Major Telecommunications Groups*1
(Indexed at fiscal 2005 = 100)EBITDA
at World's 5 Major Internet Companies*2
The portal Yahoo! JAPAN, launched in the latter half of the 1990's, has achieved an overwhelming position well ahead of the rest of the field in areas including number of users, monthly page views, monthly usage time, and search services*3,*4. Early in 2000, while existing telecommunications operators were still offering mostly narrow-band telecommunications services using dial-up connections, the SOFTBANK Group led the way to Japan's becoming one of the world's first major broadband countries with the full-scale launch of the comprehensive broadband service Yahoo! BB using ADSL. Next, SOFTBANK entered the mobile phone business in fiscal 2007 with its acquisition of Vodafone's Japanese operation, and a year later —in May 2007— first achieved the No. 1 position*5 in net subscriber additions (number of new subscriptions minus cancellations), a position that has been maintained for two consecutive years in fiscal 2008 and 2009*5. SOFTBANK has also established leading domestic positions at the content and services layer, with a wide lead over the No. 2 company in Internet auctions (Yahoo! Auctions), and strong positions in video distribution (Yahoo! Streaming), and the online game “Ragnarok Online” provided by affiliated company GungHo Online Entertainment, Inc.
We believe that SOFTBANK has been able to establish this presence in such a short period of time because of our forward-looking thinking and swift action in developing customer-oriented, value-added services that are not constricted by traditional industry standards.
The SOFTBANK Group's Mobile Communications segment has increased its comprehensive strength and recorded steady growth in its customer base by offering attractive mobile handsets and services. This has enabled us to raise both business value and corporate value by maintaining sales growth and managing with an emphasis on profitability.
Data ARPU Growth Rates
at 3 Major Mobile Operators*6
(Year-on-year)Accelerated Expansion
of Customer Base
(Cumulative subscribers of SOFTBANK MOBILE)Business value for a telecommunications company is based on a variety of indexes including the number of subscribers, ARPU*7, churn rates, etc. Merely selling at low prices does not increase business value if ARPU declines, service quality deteriorates, and churn rates rise. The SOFTBANK Group's mobile communications business is not only No. 1*8 in net subscriber additions, but is also far ahead of the competition in terms of the degree of improvement in data ARPU and churn rates. This has also resulted in dramatic gains in profitability.
Anticipating the arrival of FMC*9, we are developing a business that creates value by providing customers with “what they have been waiting for.” This involves not only reviewing and increasing transparency in pricing structures, but also (1) developing and introducing more attractive mobile handsets, (2) launching Yahoo! Keitai, which enables the user to access the Yahoo! JAPAN portal with the touch of a button, and (3) providing abundant, high-quality content and applications via open platforms. This value, in turn, leads to an improvement in profitability that outpaces sales growth.
The SOFTBANK Group is using the wealth of experience and know-how it has cultivated in Japan to aggressively develop businesses in Asia, which has high growth potential, and in China in particular.
In China, for example, we have invested in, jointly develop businesses with, and share expertise and information with both Alibaba Group Holding Limited, which has an overwhelming No. 1 position in the fields of B2B*10, C2C*11, and online payment service provider*12, and Oak Pacific Interactive (OPI), operator of RenRen which is one of the largest SNS in China. At the same time, by reciprocally making use of our experience and information, and by seeking out joint businesses, our activities not only seek gains for the individual businesses, but also aim to invigorate the Internet market from a global perspective.
Furthermore, SOFTBANK, Vodafone Group Plc, and China Mobile Limited have together established the joint venture JIL B.V. (Joint Innovation Lab) to develop new technologies and application services for mobile handsets, and Verizon Wireless also began participating in this project from April 2009. These four operators have a combined customer base of approximately one billion*13. This large customer base and the openness offered by releasing specifications encourage software developers to actively participate, and we foresee the emergence of various “killer content.”
Going forward, the SOFTBANK Group continues to develop businesses in Asia, particularly in China where economic growth is remarkable and the Internet population is showing rapid growth and aims to be ‘No. 1 Internet company in Asia.’
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