Softbank .vs. AU (KDDI)
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Transcript Softbank .vs. AU (KDDI)
Softbank .vs. AU (KDDI)
Bryan Copeland & May Su Aung
Company Overview
Company name
SOFTBANK
Focus
Business
Segments
KDDI
Broadband Infrastructure
Segment
High-tech investment
Fixed-line
Telecommunications
e-Commerce Segment
“Internet Culture” Segment
“Broadmedia” Segment
Media & Marketing Segment
Overseas Funds Segment
Technology Solutions
Services
Telecommunications Business
Fixed business dominance
Content partnerships
Short-term goal: secure a 30%
share of mobile market (roughly
30 million subscribers)
Mobile Music market
Mobile Search advertising
M-Payments
Exclusive licensing c
Trendy / Fashionable handsets
Outreach through KDDI Design
studio flagship store
Established (circa)
September 3, 1981
June 1, 1984
Principal Office
SOFTBANK CORP.
Tokyo Shiodome Bldg., 1-9-1,
Higashi-shimbashi,Minato-ku,
Tokyo 105-7303, Japan
3-2, Nishi-shinjuku 2-chome,Shinjukuku, Tokyo
Payment Plans
Cheapest on paper
Many “support” plans
• Highly focused on customer needs
• Cheapest, but only if everyone you
know uses Softbank
• # of offerings can be extremely
confusing; almost ensures no two
customers pay the exact same fee
Data Access & Infrastructure
Merger & Acquisition
Partnership (tie-up)
41% stock ownership of
Yahoo! Japan; acquired
Vodafone Japan
Google pays KDDI for Adwords placements and to
be default search provider
“My AU Page” personal
portal service
Yahoo Portal access
“Y!” button on phone
hardware
Leads directly to Yahoo!
Mobile search / services
with Yahoo! display ads
–
–
–
Blog
Mail
Address Book
Most Popular Data Services
Video download & streaming
Game Downloads
Music & Ringtones
GPS, Map & Navigation
Manga on-demand
Location Search &
FriendAlerts
Mobile web browsing
Picture & video messaging
M-Commerce Transactions
(online shopping via mobile)
Business Model
Handsets
“Fancy-looking” phones, high-tech functionality
# of Handset Models
Softbank’s Latest Handset
911SH by Sharp
2-Megapixel Camera
Music Player
E-comics
QR Code Reader
S! Town
Video Call
Enjoy Voice Call & E-Mail
all while watching TV!
Business Model - KDDI
FTTH
(Internet)
Fixed-line
Phone
KDDI (Handsets & Direction)
GOALS:
“…to continue expanding our customer base while cultivating new
business domains based on the watchwords ‘Strategy’ and ‘Speed’.”
Ubiquitous Network & Society agenda
Maintain Net Positive Churn Rate
Deal with decreasing ARPU
Simple & functional handsets
KDDI’s Most Popular Handset
A5514SA by Sanyo
Global Passport
Digital Camera
Talk/Use Email & EZWeb Overseas
Safe-Navi GPS & Live Earth
Worldwide FM Radio tuner
English-Japanese Dictionary
Language Recognition (using camera)
Effect of Mobile Number Portability
Growth in Subscriber Number (net)
Effect of Mobile Number Portability
3G Growth (Subscriber number, by carrier)
Total ARPU
Total ARPU (year-on-year) change:
Softbank - ARPU (4yr trend)
6580
6600
6600
6530
6500
6400
yen 6300
6200
6200
6100
6000
2003
2004
2005
2006
+ ¥20(▲0.3%)
of Voice – ¥680(▼10.3%)
of Data +¥700( ▲10.6%)
▲¥490(▲6.8%)
of Voice – ¥600(▼11.3%)
of Data +¥110(▲5.8%)
Future
Race for handset features,
functionality
Minimize subscriber churn-rate
MobileTV, other advanced services,
could be solution to ARPU problems
Customer loyalty & retention becomes
increasingly important
Stiff competition to claim share of
DoCoMo churn as Japanese Market
opens up
2.7%
16.4%
25.2%
55.7%
Analysis
Softbank should:
AU should:
Reduce subscriber churn by
simplifying payment plans,
especially for data plans
Continue to target tech-savvy
users & early adopters with
high-end devices
Partner with organizations
such as Universities,
Companies and Government
departments where real
savings can be made for
contacts within a “white plan”
network.
Offer a loyalty program which
rewards customers for staying
with the service long-term, such
as complimentary downloads
(can also get them interested in
trying content services)
Aim for a portion of NTT
Docomo’s less-tech
enthusiast but functionfocused business users with
simple yet powerful handsets
Entice NTT and Softbank
customers by being the first to
offer an unlimited bandwidth
option for new handset models