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Ade SuwandaJuniarto, Ambar Tri Bawono, Wu, Pei-Hsien, Rajonti Hutajulu

Mobile Business Course

2012

....... 2 Company History .............................................................................................................................. 6 2012 Softbank becoming the 2nd largest Internet provider in Japan............................................................................................................................................................................................................................................................................. 4 Strategies Differences: .......................................................................................................................................................................................................................... 4 EMOBILE . 2 EMOBILE ..................................................................................................................................................................................................................................................... 5 Softbank Acquisition of eAccess ........... 4 Softbank .............. 2 Softbank .................................................................................. 5 Companies Milestone .................................................. 7 1 .................................................................................................................................Contents Market Value ......................................................................................................... 3 Competitiveness of Softbank and EMOBILE....................................................................................................

7% of J-Phone. with 61 million subscribers. Softbank is now the 2nd largest network service provider in Japan. our focus on Softbank and EMOBILE giving data as below: Company History Softbank Start from Combination Founded in 1981 as a sector in Japan Telecom with the name Digital Phone. Japan Telecom established J-PHONE by combining Digital Phone Group and Digital Group. Followed by AU.3 million subscribers.By September 2012. the name of the company has officially changed to Vodafone KK. The third is Softbank with 35 million subscribers. 1999. in October 1. it has 36 million subscribers.900 subscribers in total. 98% of them are using 3G service.9 million subscribers raise into approximately 136. Softbank started as a wholesaler of PC software.309.7% of Japan Telecom and 69. 2 . Vodafone became the 2nd largest mobile group in Japan.89% penetration rate in September 2012 (source: Wikipedia). the market has dramatically changed since it has announced to acquire EMOBILE. At that time. However. British mobile group Vodafone gains its share to 66. Market Value Before we discuss the competition market in Japanese carrier. it Japan wireless telecommunication services market volume: This total number of market volume in 2011 as 127. Attained 4. NTT DoCoMo still dominates the market. or a 106. 2 years later. which indicates a big market potential. 2003. In 2001. there are more than 136 million mobile subscribers in Japan.

KDDIandSoftbankMobile that previously exist. Masayoshi Son is very ambitious in the mobile market and wouldn’t let go of any chances of expanding. and there is also a card-type model that plugs into laptop computers. EMOBILEstarted to enter Japan’s mobile market in March 2007. one is the keyboard-equipped EM ONE terminal. since Vodafone KK fail to satisfy the customers. Vodafone exited Japan. EMOBILE involve Huawei to build a major part of the network in northern Japan covering cities including Sendai and Sapporo. fortifying its leading broadband market 3 . the target market ofEMOBILEis now for business clients. First. it has announced that the company is renamed. Actually. Second. anywhere. About half year later. At that point.980 per month.” with the mutual consent that the new name will be “new. Softbank Mobile Corp. Also. easy-to-understand and familiar”. With a lower income. EMOBILElaunched a strategy to provide higher access speed with lower prices. EMOBILE data communication service is fixed at a flat rate of ¥5. its priority is providing data rather than voice. there are two things that differentiate EMOBILEfrom other established players. Finally. EMOBILE Established byeAcessin January 2005. Now. In March 2006 EMOBILE selected Ericsson as one of the prime suppliers for its new WCDMA/HSDPA network. At that time. which allows the user to view one-segment terrestrial digital television broadcasting. it has a good vision. They together signed an act call “Corporate Rehabilitation of Willcom”. flat rate and affordable pricing mobile broadband services. When it was first launched. EMOBILE is well known as a high speed. Vodafone KK has agreed to sell its holdings to Softbank. The success story of EMOBILEcannot be separatedfrom the mobile market condition when the time it was firstly launched. the condition of Japan’s mobile market was still growing.2006 Vodafone Exited Japan On the March of 2006. it has outsourced for help. to make broadband mobile and affordable in Japan. As a newcomer in Japan telecommunication operator business. Related to data communication service. Softbank purchased 100% share holdings of Willcom. EMOBILE selling data cards together with ultra-mobile PCs. in October 2006. in order to counter the dominance of the three company operators. In July 2009. Also. This is because trendy young people favor mobile data services and care a lot about access speed. as PHS operator Willcom was struggling on the edge of bankruptcy. To attract young and fashionable subscribers. it has set its target for a specific subscriber base. 2010 Softbank Acquired PHS Operator Willcom Self-named as “Bill Gates in Japan”. EMOBILE together with Huawei launched Japan’s first HSPA+ network. such as built manybase stationsin order tosupport the delivery ofhigh-quality voiceservice and coverage. EMOBILE put a higher priority on data services. past Nagoya in the center to Osaka in the west. The Ericsson-supplied network will enable EMOBILE to aggressively enter the market with premium quality and high-speed mobile broadband services. EMOBILE contracted Ericsson to build the network in a large area of Japan from Tokyo in the east. In the other words. Japan’s mobile market generates high average revenue per user (ARPU) and a low minute of usage per user per month (MOU). When we look back to the past in 2007. EMOBILE needs to implement an appropriate strategy. There are two models to choose from currently. Since EMOBILEbelieve that data revenue will grow while voice revenue declines and Japan’s penetration rate will be driven up by corporate subscriptions. they are also quite sensitive to price. NTTDoCoMo. in which they agreed to keep the name Willcom and continue to provide PHS service for customers. In order to build its network installation. Several important event and achievement was also happened in year 2009. means that it aims at heavy data users. EMOBILE had to fight withthe threemajoroperators in Japan’s telecommunication. and selected appropriate equipment vendors that suitable to support its network. In 2010.instead of using the general strategyofmobile operators. for use anytime.

2010.000 subscribers in Japan. However.grew steadily.EMOBILE launch “EMOBILE LTE” or Next-Generation Mobile Communications Service with a maximum downlink speed of 75Mbps in March 2012 Related to the number of subscriber. Germany and Japan simultaneously. However what happen in 2011 is different. the United Kingdom. the company launched a very popular mobile router product.EMOBILE has a good and significant trend in the increase of subscribers. Starting from 1 million subscribers in November 2008. Competitiveness of Softbank and EMOBILE Softbank and EMOBILE are compete in Net subscriber additions (2011) addition new subscribers. customers now can choose whether they can buy iPhone from Softbank or KDDI. The interesting in this competition is when it move from quarter 4 (Q4) in 2010 to quarter 1 (Q1) in 2011. it increased into 2 million subscribers in November 2009. Also. which is number forth. and reached the largest market share of data card for 30 consecutive months at a staggering pace.000. in the United States. in quarter 2 (Q2) of 2011 Softbank and KDDI tend to increasing their new subscribers. EMOBILE granted license of the 3. Apple started launch iPhone 4 in June 24. SOFTBANK MOBILE made four commitments—(1) 4 . Following the acquisition of Vodafone K. when we check on the graph. France. Then.K. In February 2011. Strategies Differences: Softbank SOFTBANK's mobile communications segment is operated with SOFTBANK MOBILE Corp. it was all “big three” ofmobile carrier in Japan tend to lost their new potentialcustomers. while in contrary NTT DOCOMO and EMOBILE tend to decrease.. amazingly Softbank that have rank 3 in the total subscribers leading in full 2 years beated both NTT DOCOMO and KDDI. it achieved 4. in March 2012.position and strong brand recognition. EMOBILE tend to decline in slightly slope compare to NTT DOCOMO. called “Pocket Wi-Fi” that uses 3G technology with WiFi router functionality. but eAceess. as its core operator. the company passed the 3 million mobile broadband subscriber mark for the first time. Then. KDDI made a move to have contract with apple.9 Generation Mobile Telecommunication System "LTE" from the Ministry of Internal Affairs and Communications (MIC) in June 2009. in December 2009. Yet. and it really pay attention people in Japan.

E-Trade. 2009 was 1. however. EF Education First and Morningstar. As with most 3G/HSPA networks customers have reported congestion problems in some locations at peak times.Allowed organizers of COMDEX to restrict admission of media. As of April 17.tv. and (4) Sales Structure and Branding Enhancement—and worked swiftly to raise its competitiveness. 2006 . depending upon the subscriber modem used.Vodafone Japan changes its corporate name. Early April.             Source: Wikipedia. Ustream. 2006 . Companies Milestone Softbank      1995 . mobile phone brand name. As of March 31.  EMOBILE EMOBILE has a reseller/virtual network arrangement with several fix line ISPs including Asahi Net. 2009 their web site is claiming 90% coverage of Japan's population.Network Enhancement. and [mb. The cost is said to be more than 100. a Nippon Professional Baseball team. 2010 . 2010 . October 1.softbank. 21Mbit/s HSPA+ and 42Mbit/s DC-HSDPA is available in major metropolitan areas. 2009 they introduced HSUPA to metropolitan areas claiming support for 5.8Mbit/s. and without any knowledge and skill in servicing voice. creating a spiraling effect 2001 . October 1. 2012. Software is known has aggressive acquisition in their historical company milestone.SoftBank becomes the owner of the Fukuoka SoftBank Hawks. and it seem that this strategy was relative success.One of the succes strategy that Softbanks implement is when they began execlusively made contract as official carrier of the iPhone.EMOBILEthen start to offer voice service. a spin-off of Ziff Davis January 28.SoftBank announces its agreement to buy Vodafone Japan.000 yen. they will add the HTC Aria to their smart phone offerings. they are beginning LTE service with initial advertised speeds of 75Mbit/s. 2008 . Between March 2007 and March 2008 they expanded their voice communication service area to a nationwide level.com 5 . they are becoming more popular. giving it a stake in Japan's $78 billion mobile market. 2006 . EMOBILEthink that they need to entering voice service as well to be able to compete with “the big three” in Japan. January 28. they began to learnfromNTT DOCOMO. March 17. an Internet betting exchange. As of early 2011.It was announced that SoftBank and Tiffany & Co. totalling more than 20 carat.SoftBank Mobile announced partnership with Apple and brought the iPhone (3G) to Japan later in 2008 February 3. EMOBILE Differentiate in term of selling only data services with the latest technology at the beginning. This cellphone contains more than 400 platinum diamond. eMobile tend to have core competence in servicing data service at that time. (3) Mobile Content Enhancement.Bought COMDEX from The Interface Group 1999 .Ayumi Hamasaki becomes the commercial spokesperson.000. 2005 . SBI Group is a Japanese financial services company that began in 1999 as a branch of SoftBank. June 4.7% in Ustream with the option to increase shares to 30% by July 2011.Sold COMDEX to Key3Media. Total subscribers as of April 30. SoftBank. collaborated in making a limited 10 model-only cellphone.jp] respectively. It is claimed that this speed will eventually increase to 112Mbit/s.53 million (ref web site). On March 15. It was claim by EMOBILE that they were the first Japanese carriers that already have 100 percent HSPA+ coverage. until the release of iPhone 4S when it became available on au by KDDI as well. At the end of 2010. it has various partnerships in Japanese subsidiaries of foreign companies such as Yahoo!.SoftBank completed the purchase of 23% of Betfair. and its mobile phone domain name to SoftBank Mobile.SoftBank acquired 13. (2) Handset Enhancement. 2008 .

Softbank and eAccess announced a share exchange agreement. and accelerate the penetration of the mobile broadband service. the firm behind EMOBILE. eAccess common shares will be delisted from Tokyo Stock Exchange in late February 2013 if the share exchange approved by the shareholders and other necessary procedures. network sharing (¥110bn) and "other management efficiencies" (¥50bn).Softbank Acquisition of eAccess In October 1st.000 in 2. 2012.softbank. Financial Results of Past 3 Years Source: http://www.3bn) to buy stock in eAccess. Softbank will gain http://www. the latter also the result of acquiring a smaller player. E-Mobile has a network of 10. The company is targeting synergies of ¥360bn. In addition.000 3G and/or LTE base stations running in the 1.7GHz band while Softbank boasts 20.unwiredinsight.5GHz. 6 . the 4G element of PHS operator Willcom.co. Softbank is paying ¥180. Softbank will become the sole parent company of eAccess and eAccess will become its wholly-owned subsidiary of Softbank.1GHz. as well as its TD-LTE deployment in 2.com/2011/emobile-japan-lte-new-entrants more spectrums for its already mixed bag of FDD and TDD frequencies. split betweencustomer base expansion (¥200bn).2bn ($2.jp/en/news/press/2012/20121001_01/ The purpose of the share exchange is to provide a structure that allows both companies to combine management resources effectively and efficiently.

6m subscribers. 7 . Softbank still sees the iPhone as the center of its consumer strategy.8% share. Sprint has sold to Softbank.com On the public press conference October 15. and the new deal will give it additional capacity to support the data-hungry device. The 3rd largest Internet provider. especially now it has secured the LTE-based iPhone 5. Softbank has seen eMobile nibbling at his heels with its competitive datafocused plans. Softbank had 35m mobile subscribers as of the end of August. Annual revenue is estimated 64 billion. Together. the iPhone exclusive.9m customers. Buying eAccess means removing competitor and gaining more scale to go after the big two. while e-Mobile had just 4. the two network provider will have 28. With large subscribers.7% of the total base. Softbank is now Globally No. ahead of KDDI's 26.2012 Softbank becoming the 2nd largest Internet provider in Japan Since Softbank lost its key commercial advantage last year. Softbank has thrown the second bomb to the Internet provider market. 2012.5% or 35. This movement of Softbank put them into the 2nd largest network carrier in Japan. Source: Softbank. Docomo has 60. for 44.3m. 3 network provider.