Mobile Services go beyond handsets
February 17, 2011
Ted Matsumoto
22Senior Executive Vice PresidentSOFTBANK MOBILE Corp.
SOFTBANK CORP. ・Holding Company with 116 subsidiaries and 22,000 employees.・Established in Sept. 1981 by Masayoshi Son as a software wholesaler.Established in Sept. 1981 by Masayoshi Son as a software wholesaler.・Grew together with the growth of internet. ・Come to the judgment that it is indispensable to own communication carrier j g pbusiness to take a leadership in the integrated information service market.
Distrib tion/
Onlinegames
No.1Onlinevideo
Online securities Distribution/
Service Domain
PortalNo.1
No.1
SearchNo 1
videoNo.1
AuctionN 1
No.1
(In Japan) Software distribution
No.1
No.1 No.1
Mobile
InfrastructureDomain
ADSLNo.1
Fixed-lineclose to No.1
MobileCommunicationsPresently, No.3
3
Domain(In Japan)
Ecosystem of Mobile Business in Japany p
Handset VendorsServers-Clients System DesignService Content
Provider
Network OperatorService content charge Handset
price
Planning Planning
Network OperatorSales support
Communication charge (Monthly)
PR/Ads
Retailers(Shops, mega stores, etc)
I iti l t
Provide handsetsactivation, customer service
Installment payment for a handset (Monthly)Various service charges (Monthly)
PR/Ads
Initial payment for a handset, etc.
The Users
(Monthly)
4
The Users
SoftBank is a “Total Value” Provider
・ Users are interested in only one thing;“What terminal shall I buy, how much money should I pay every month, and then what can I do?”
S h ld id T t l V l P k ith O t・ Some one should provide a Total Value Package with One-stop shopping/One-stop Billing, taking all the accountability for the entire packageentire package.
ServiceService(Cloud) Terminal
The Trinity The Trinity
Network5
Network
Mobile Business dramatically changed the financial structure of SoftBank
EBITDA by Segment (Q1-Q3:Apr.-Dec.)(bn JPY)
the financial structure of SoftBanky g ( p )
700.5700
800
483 7 508.4
601.2600
391.9
471.6
483.7
382.4400
500 Mobile Communications(SOFTBANK MOBILE Corp.)
233.4
304.8303.7
300
B db d I f t t
Fixed-line Telecommunications (SOFTBANK TELECOM Corp.)
39 8 52.0 54.1 51.0 47.145.5 47.3 58.2
7 231.8
34.894.9100
200 Broadband Infrastructure(SOFTBANK BB Corp.)
Internet Culture100.9 108.2 118.930.7 39.8
58.0 76.7 91.87.2
0
100 Internet Culture(Yahoo Japan and others)
6-100
Q1-3/05 Q1-3/06 Q1-3/07 Q1-3/08 Q1-3/09 Q1-3/10
Significant increase of subscribers after SoftBank took over
25,000(k) 24,640
▼
after SoftBank took overEnhancement of- Network- Handsets line-up
20,000
- Data Services- Marketing and Distributionmade it happen
15 000
15,222▼
15,000
▲
7
10,000 ▲January 2011
▲Apr. 2006
Competitive landscape has also been changed
(k)3 Major Mobile Operators
Net Adds
900
1,000
SOFTBANK
700
800 Net adds share 62%* (for Oct. – Dec.)
500
600( )
300
400
NTT DOCOMOKDDI
100
200KDDI
0FY05/3Q FY06/3Q FY07/3Q FY08/3Q FY09/3Q FY10/3Q
8* Calculated by SOFTBANK based on Telecommunications Carriers Association data.
Data ARPU is 54% of the total ARPUCash income per subscription sustains steadily.Data ARPU reached US$28
(Unit (Japanese Yen))
7,000
payment200 200
5,780 5,7505,960 5,8806,040
6,000
paymentfor Handsets
230
270 280 260
1,000 1,680 1,480 1,310
4 000
5,000
Voice ARPU(+ monthlyfixed fee)
4,230
3,040 2,3002,150
1,9803,000
4,000
fixed fee)
2,000
Data ARPU1,330 1,490
1,790 2,060 2,330
0
1,000(without SMS)
9[FY]
Note: cash income per subscription = ARPU + handset installment payment + backup service package, etc.
006/Q1 Q2 Q3 Q4 07/Q1 Q2 Q3 Q4 08/Q1 Q2 Q3 Q4 09/Q1 Q2 Q3 Q4 10/Q1 Q2 Q3
Now, all the Network is 3GNumber of Cumulative Subscribers
24 640(K) At the time of acquisition
(end of Apr 2006)
25,000 24,640▼ 3G subscribers: 3.27m
3G ratio: 21.5%
20,000
15,222
15,000
G
5,▼
10,0002G
on 1.5GHz End of January 20113G subscribers: 24.64m
100%5,000 3G
on 2GHz
3G ratio : 100%
HSPA ratio: approx.70%
03月 9月 3月 9月 3月 9月 3月 9月 3月 9月 3月 9月 3月2004 2005 2006 2007 2008
(as of June 10)
20102009
10* HSPA base stations cover approx.90% of the population
Future Network should be the combination of multiple technologiesof multiple technologies
・ Future data traffic would be very big (50-100 times), unpredictable anddownload-heavy.
- Mobile Network cannot solely support all of such traffic.
Diff t t k h ld j i tl t th t t l t ffi b d d di・ Different network should jointly support the total traffic burden, depending onthe places and the types of services.
- It should be seamlessly integrated on one handsets.
3G → 4G (More Spectrum / Smaller Cell)
・ As only the mobile network (3G/4G) can assure “anytime and anywhere(ubiquitous)” communication link, its value will never be diminished.
11
( q ) ,- Mobile operators should charge the users, not based on the number of 3G/4G packets,
but based on the “total value” they provide.
WiFi and Mobile complement each other
M bil k h l i i i ll d l d i h i・ Mobile network technologies were originally developed with an aim to seamlessly cover vast areas and enable uninterrupted communications in all kinds of environmentall kinds of environment.
・ WiFi was developed with an aim to enable a high-speed wireless access in the wired system’s last several tens of meters. y
・ They mutually complement, rather than compete against each other.
- “Islands of WiFi in Mobile Ocean” is the image.
- We would be happy if 75-85% of traffic is absorbed by WiFi.ppy y
12
Broadcast + Cache is the new way of Traffic offload
Neck part of dinosaur handled by Broadcast + Cache”Traffic
・ Neck part of dinosaur handled by Broadcast + Cache- Scheduled delivery of all kinds of News, Market Info, Sports updates,
Blogs, Gossips, etc (subscription base)- Download of Music, Video clips, Books, Games, etc in the midnight
(User shall buy only the key via normal 2-way communication channel) User will take any of the above as if it were an On Demand Service- User will take any of the above as if it were an On-Demand Service
・ Body and Long Tail part handled by On-Demand service.
・ Various Mobile Broadcast technologies and/or “TD LTE + MBMS” ld ti f thi d“TD-LTE + eMBMS” would satisfy this need.
13Various Content
Internet Services will become seamlessPresent Future
Internet Services will become seamlessPresent Future
• The users access various contents services from their PCs
• All the services are equally provided to various user equipmentsservices from their PCs
• Most of audio/video services are provided on consumer electronics
to various user equipments
Mobile
PC Consumer Electronics
14
PC Consumer Electronics
Access is Shifting from PC to Mobile
(bn PV) More than 85%Page Views of mixi
30
35 access is from MobilePage Views of mixi,
the biggest SNS in Japan
Mobile Access via mobile
25
Mobile
PCincreases rapidly due to provision ofgame applications
15
20
10
0
5
Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep
FY06 FY07 FY08 FY09 FY10
Jan
15Source: IR material publicized by mixi, inc.
Tablet is something between PC and Smart Phone・ The Tablet is the “Advanced Net PC” without hard keyboard as well as theThe Tablet is the Advanced Net PC without hard keyboard, as well as the
large screen version of “Advanced Smart Phone”.
・ Many users may first think they will use the Tablet only in the fixedMany users may first think they will use the Tablet only in the fixed environment, and, accordingly, may judge WiFi only model might be good enough.
・ But, once it becomes a part of their daily life, they start understanding that they cannot miss it anytime and anywhere, and, thus, 3G is needed.
40
Mobile HandsetsSales Forecast in Japan
(mil)(mil)15
PCs & TabletsSales Forecast in Japan
30
Feature phones 10Desktop
20
Feature phones
Laptop
10
5
NotebookTablet
160
2008 2009 2010 2011 2012 2013 2014 2015
Smartphones0
2007 2008 2009 2010 2011 2012 2013 2014 2015
Tablet
Forecast Forecast
Mobile carriers’ message to the Smart phone and Tablet usersto the Smart phone and Tablet users・ Carry your Smart phone always in your pocket, and, carry your Tablet in your
bag. (When you travel, also carry keyboard and AC power supply.)
・ At your home and at your office, use WiFi. Don’t use 3G/4G network for data.At your home and at your office, use WiFi. Don t use 3G/4G network for data. (We want to keep your monthly bill as small as possible.)
Use the TV screen at any place when you want to show something you have・ Use the TV screen at any place, when you want to show something you have in your Smart phone or Tablet to other people.
17
Demands for ubiquitous 3G connection is expanding・ Displays and Cameras anywhere・ Displays and Cameras, anywhere・ Sensors and Meters, anywhere.・ 3G connection for every electronics gadgets.・ “Remote Monitoring” for the peace of mindRemote Monitoring for the peace of mind.・ Health care products needs 3G ・ 3G connection is indispensable for “Point of sales”
Watching CameraKids MonitorPhotoVisionBlood Glucose Monitor Weight Scale
18Vending Machine
Cash Register Barcode Reader Display Advertisement
Why 3G connection?
・ Except those devices generating very heavy data trafficExcept those devices generating very heavy data traffic, 3G will provide the most economical communication link.
-3G is the best way to eliminate wiring, and, thus, save the high civil work cost.
-3G connects any terminal directly to the Cloud, eliminating the Intermediate Servers.
・ 3G connection provides the “peace of mind”, even in th h f i it i licase the chance of using it is very slim.
-Communication fee should not be charged on the volume ofCommunication fee should not be charged on the volume of transmitted data packets, but on the “value” it provided .
19
3 new SoftBank productswith embedded 3Gmodule
The word M2M may be misleading. It' t ll M2H (H ) H2MIt's actually M2H (Human) or H2M
It's too risky to allow M2M traffic grow without control- It's too risky to allow M2M traffic grow without control.
Ph t Vi i h b l d ll t dPhoto Vision has been already very well accepted in the market for the past 20 months. Other 2 new products are just going to be launched.
Total number of M2M products of SoftBank is now 1 133 8381,133,838.
Photo Vision (Digital Photo Frame)
From Digital camera
E-mail to Photo Vision attaching pictures!
g
attaching pictures!From mobile
From PC
Photo Vision
・Various viewing modes with Clock with Calendar
DPF-NS70 Multiple with Text Mail
21Basic service charge: JPY690 / month
Mimamori-Camera (Watching) Service
You can check your pet from outside You can take a picture from outside
How is he doing?Check, check
Checkvia TV call SMS
Take a picture!
Gi l d t t t di
Bowww…Bowww…MMS w/picture
Z001
Give alarm and start to recordingby detecting the moving subjectWatch your family living far away
How are you
Moved!How are you doing?Checkvia TV call
How are you doing?
I’m fine!I’m fine! SMS
22Hardware Price : JPY23,520 (JPY980*24months)Basic service charge : JPY490 / month
Tariff TV call : JPY 21 / 30secMMS/SMS : Free
Mimamori-Keitai (Watching) Service
Inform the trouble One touch Call and Mail
Pull a Strap Fixed phrase SMS
Up to 20 contacts Outgoing call +Fixed phrase SMS
Up to 20 contacts(Call 1 number )♪
Buzzer!Push a Button
Fixed phrase SMS
I’m lost…
Location URL Location URL
Hands-free Talk-back to Voice call Search the location
Are you doing Where is Nancy?
Kiddy Park
Are you doing all right?
♪
Where is Nancy?I’m fine!
No operation to Oh, she is in the near by park!
23
pstart talking
y p
To be released mid March 2011