Tag: 孫正義

Growth in Japan: the SoftBank group
SoftBank gaining market share in Japan

SoftBank market cap catching up with Docomo

Mobile subscription data released last week show, that the SoftBank group continues to gain market share while incumbent NTT-docomo continues to lose market share – an upward trend for SoftBank, and a downward trend for NTT-docomo essentially unbroken since SoftBank acquired Vodafone-Japan and succeeded with the turn-round.

SoftBank’s market cap has also steadily increased recently and is now close to NTT-docomo’s, exceeding it on some days:

operator || Market Cap (May 10, 2013)
- NTT-docomo || YEN 6945 billion (US$ 68 billion)
- SoftBank || YEN 6688 billion (US$ 66 billion)
- KDDI || YEN 4162 billion (US$ 41 billion)
SoftBank group exceeds 40 million mobile subscriptions

Bringing eMobile and PHS operator Willcom under its group umbrella, and by creating the new operator Wireless City Planning (WCP), Softbank group subscription numbers now exceed 40 million, and have overtaken KDDI

PHS operator Willcom joins the SoftBank group

PHS operator Willcom registered for bankruptcy administration essentially because of the high investments in upgrading the legacy PHS network infrastructure, and is currently in corporate reconstruction with SoftBank as the reconstruction sponsor.

Wireless City Planning (WCP) is a wireless operator owned partially by Advantage Partners and SoftBank and other investors, and representing the next generation network Willcom hoped – but could not afford – to develop.

While negotiating the SPRINT acquisition, SoftBank tricks out KDDI to take control of eMobile

While Masayoshi Son was secretly negotiating his offer for SPRINT, he discovered that KDDI was in negotiations to acquire new entrant eMobile. While continuing the SPRINT negotiations, he was a faster decision maker than KDDI, and could win the eMobile acquisition right under the eyes of KDDI.

Since a few weeks ago, iPhones on SoftBank‘s network automatically log into both SoftBank’s and eMobile‘s LTE radio networks, greatly enhancing data transmission rates and coverage.

More in our report on Japan’s telecommunications sector

Softbank and Renewable Energy

Softbank recently also entered the renewable energy business. Read more about Softbank’s renewable energy business in our Renewable energy report (our work on Japan’s energy sector is referenced in IEEE-Spectrum here).

Learn more about SoftBank, Masayoshi Son, and his 30/300 year vision for SoftBank

Report on “SoftBank today and 300 year vision” (approx 120 page, pdf file)

SoftBank today and 300 year vision (20th edition)

Copyright 2013 Eurotechnology Japan KK All Rights Reserved
May 13, 2013
Japan telecom sector financial results and the Softbank-Sprint take-over battle

SoftBank seeks to win, where Docomo failed – taking Japan’s telecoms know-how global

Japan telecom sector financial results: very very healthy

With SoftBank and DISH battling for US mobile operator SPRINT, the eyes are on Japan’s very healthy mobile phone sector, which a few days ago announced financial results for FY 2012. Japan’s mobile operators combined achieve about US$ 120 billion in revenues and income margins are among the highest globally.

The size, success and extremely advanced state of Japan’s mobile phone sector, SoftBank’s excellence, and Masayoshi Son’s midas touch give SoftBank the strength to go for an acquisition of SPRINT – and to aim for the large scale globalization which DoCoMo tried, but could not achieve about 10 years ago.

Japan’s mobile operator revenues are about US$ 120 billion and growing

Japan’s mobile operators DoCoMo, KDDI and SoftBank are growing steadily

Japan’s mobile phone operators are protected by government licenses, but within this scope, there is passionate competition and there are many M&A actions. With high investments in infrastructure, Japan’s mobile phone sector is among the most advanced in the world. Japan initiated the global mobile internet revolution.

Combined, Japan’s mobile operators achieve about US$ 120 billion in sales annually

Combined, Japan’s mobile operators achieve about US$ 120 billion in sales annually, and the size of Japan’s mobile industry has been growing steadily ever since mobile phones started in Japan.

The Figure above clearly shows the growth of SoftBank from a small venture to one of the world’s largest telecom operators, and the acquisition and turn-round of Vodafone-Japan.

SoftBank aims for US$ 10 billion operating income/year

SoftBank is on track to achieve the target of YEN 1 Trillion operating income/year by FY 2016

FY2012 financial results announced a few days ago show that SoftBank has overtaken KDDI in terms of operating profits, is on track to overtake DoCoMo and to achieve its target of YEN 1 Trillion (US$ 10 Billion) in operating profits by 2016 – this while investing heavily in infrastructure in Japan, and paying down debt remaining from the acquisition of Vodafone-Japan.

Operator Operating income/year
China Mobile US$ 24.4 Billion
Vodafone US$ 17.4 Billion
Verizon US$ 13.2 Billion
SoftBank US$ 7.5 Billion, 2016-target: US$ 10 billion

More in our report on Japan’s telecom sector

SoftBank today and 300 year vision report:

SoftBank today and 300 year vision (20th edition)

Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved

May 7, 2013
Japan wireless industry boom driven by smartphones. Japan adds about two Finlands worth of wireless subscriptions per year.

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

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

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

Japan telecommunications industry (66th edition) – Market analysis & tutorial

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

January 16, 2013