Beginning in a time when the “Internet” was not a commonly known term, SOFTBANK has continued to grow by focusing on the information industry, and anticipating the age of a “the Information Revolution,” when everyone is able to share infinite wisdom and knowledge by carrying a personal information terminal and connecting to a network.
SOFTBANK predicted that with advances in microprocessors, “the Information Revolution would initially start with PCs.” In order for hardware such as PCs to gain popularity widely distributed software is needed. But at this time there were no wholesalers intermediating between software production companies and software vendors. At this point, SOFTBANK launched a software distribution business to spur innovation in PC software distribution. The business rapidly grew as SOFTBANK concluded exclusive contracts with retail stores and with large software production companies, and along with becoming one of Japan's largest IT-related distribution companies in terms of the number of product items handled, this contributed to the widespread popularity of PCs.
The next area SOFTBANK entered was PC-related publishing. At this time, PC standards differed by manufacturer and software was not mutually compatible. Personal computing magazines at the time, however, were mostly “comprehensive magazines” carrying information covering multiple manufacturers, and did not meet the needs of readers who wanted in-depth information for specific PC models and manufacturers. At this point, SOFTBANK began publishing a succession of “specialist magazines” that introduced PCs and software by individual manufacturer, and this promoted the popularity of PCs and software distribution.
In the 1990's, SOFTBANK predicted that “the Information Revolution will be accelerated by PCs being connected to each other. This is the beginning.” SOFTBANK therefore decided to quickly identify and cultivate promising Internet-related companies in the U.S., where growth was forecast in the process of those revolutionary changes. With this in mind, SOFTBANK Holdings Inc. was established in the U.S. to swiftly gather information and make strategic investments in U.S. Internet-related companies.
In addition, to gather the most up-to-date computer-related information that would lead to strategic investments, SOFTBANK acquired the Interface Group, operator of the major computer fair COMDEX, and Ziff-Davis Publishing Company, the publisher of PC WEEK magazine, which featured leading-edge computer industry information. Using the information provided by these companies, SOFTBANK invested in the U.S. Internet portal and search provider Yahoo! Inc., and supported its development in Japan with the establishment of the joint venture Yahoo Japan Corporation. Yahoo Japan is the core company of the current Internet Culture segment, and the portal it operates has Japan's largest number of page views*1.
During the first half of the 2000's, SOFTBANK predicted that “broadband services would further accelerate the Information Revolution, and that this would bring about major changes to people's lifestyles.” At the time, however, Japan primarily had narrowband services and the rapid spread of broadband services through existing telecom operators could not be foreseen. Therefore, SOFTBANK believed that it could bring about major changes to Japan's Internet environment by taking advantage of the deregulation of the telecommunications business and providing its own broadband services. In accordance with this belief, SOFTBANK used IP technology to construct a leading-edge backbone network, and in 2001 launched the Yahoo! BB comprehensive broadband service utilizing DSL*2 technology.
The customer base grew rapidly as a result of SOFTBANK's utilization of its close relationships with mass appliance retailers, cultivated by the software distribution business, to proactively acquire subscribers, while also providing value-added services like the BB Phone IP telephony service. The Yahoo! BB service provided by SOFTBANK BB is the core of the current Broadband Infrastructure segment, and is also Japan's largest ADSL service*3.
In this way, SOFTBANK drove Japan's shift to broadband, and as a result Japan became a country in which users were able to use broadband services at globally low rates and high transmission speeds*4.
SOFTBANK predicted that “the further acceleration of the Information Revolution, primarily with mobile Internet, would bring about an age in which a variety of content could be enjoyed anytime, anywhere.” Therefore, SOFTBANK decided to enter the mobile communications business by acquiring Vodafone K.K. in 2006.
After acquiring the business, SOFTBANK embarked on four initiatives to quickly enhance its competitiveness: (1) Network Enhancement; (2) Handset Enhancement; (3) Mobile Content Enhancement; and (4) Sales Structure and Branding Enhancement. The cumulative number of subscribers has increased 70% to reach 25.41 million in the five years since the Group entered the business.
Further use of the mobile Internet was accelerated through the promotion of mobile handsets tailored for mobile Internet use, including the release of Apple's iPhone 3G released in 2008. In addition, the SOFTBANK Group continues to help companies increase their productivity by proposing new working styles that use iPad following its launch in May 2010.
As 2010 marked the SOFTBANK Group's 30th anniversary, it announced “SOFTBANK's Next 30-Year Vision.”
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