Japan wireless industry adds 11 million subscriptions/year currently

Softbank targets ¥ 1 Trillion operational income

Japan wireless industry is growing, and Japan’s mobile operators add 11 million subscriptions/year currently: Japan adds about two Finlands worth of wireless subscriptions per year.

Softbank entered the telecom arena in 2001 with Yahoo BB, Nagoya Metallic and later Osaka Metallic and Tokyo Metallic Communications. However, when Softbank announced the acquisition of the ailing Vodafone-Japan operations, few telecom professionals outside Japan had ever heard about Softbank, and major telecom equipment makers approached our company to help start business with Softbank.

Today, Softbank has acquired Japan’s eAccess/eMobile, is sponsoring the rehabilitation of Willcom, founded Wireless City Planning, and is in the processes of gaining regulatory approval to acquire the US operator SPRINT – on the way to become one of the world’s largest telecom operators.

Japan wireless industry operators have combined operating profits of US$ 24 billion/year – Softbank targets operating profits of YEN 1 Trillion (= US$ 11 Billion) for financial year 2016

Softbank targeting YEN 1 trillion operating income by FY2016
Softbank targeting YEN 1 trillion operating income by FY2016

Will Softbank overtake NTT-docomo?

NTT-docomo and Softbank could not be more different. While both are public companies, traded on the Tokyo Stock Exchange, about 21.7% of NTT-docomo’s shares are owned by Japan’s Ministry of Finance via their holding of NTT shares.
On the other hand, Masayoshi Son owns about 21.4% of Softbank shares – almost the same ratio.
One of Softbank’s targets is to achieve YEN 1 Trillion (= approx. US$ 11 Billion) in annual operating income.
Softbank recently acquired US operator SPRINT, and to stimulate cooperation between Japanese employees of Softbank, Softbank is now offering YEN 1 million (US$ 11,000) bonus to those Softbank employees clearing a certain level of English language test.

Japan's mobile subscriptions growth by 11 million/year
Japan’s mobile subscriptions growth by 11 million/year

Smartphones drive a boom in Japan’s mobile communications sector

Smartphones drive a boom in Japan’s mobile communications sector: while growth has been fading over the last 10 years, iPhone and other smart phones accelerate growth. Currently Japan adds about 11 million mobile subscriptions every year: Japan adds about two Finland’s worth of mobile subscribers per year.
Read detailed analysis in our Japan-Telecommunications-Industry Report

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