Press Conference Platinum Band
March 1, 2012 Masayoshi Son Chairman & CEO SOFTBANK MOBILE Corp. 1 Connect Anywhere
2 Longstanding ambition
Advocacy ad on 800MHz on Sept. 6, 2004 3 @SoftBank User My home is out of coverage. Mr. Son, help me please!
@SoftBank User Weak signal... Do something!
@SoftBank User SoftBank signal is weak. 44 Reasons for Churn (FY2009/2H)
1st Poor coverage
2nd Tariff
Family members on Coverage was 3rd other network biggest weakness
*Surveyed by SBM 5 Network Satisfaction (survey in March 2010)
NTT DOCOMO 51%
au 51%
Half of SOFTBANK 27% competitors’ users
*Surveyed by SBM 6 Improve Network Satisfaction
7 Network Satisfaction
Connectivity × Speed
8 Network Satisfaction
Connectivity × Speed
9 180k Number of Base Stations x3 SOFTBANK in 2 years Network Enhancement Initiative
65k
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2009 FY2010 FY2011 *Excluding home femtocell and home repeaters 10 98.9% 98.8% 98.2% Connectivity Ratio
Caught up with competitors
*Surveyed by external research company (as of Jan. 2012). NTT DOCOMO au SOFTBANK Calls executed by each operator to test monitor participants (approx. 150,000/month). 11 Number of Wi-Fi Spots
SOFTBANK 240,000 Overwhelming au approx. 70,000 No.1
NTT DOCOMO approx. 8,100
*Surveyed by SBM 12 Network Satisfaction
Connectivity × Speed
13 Smartphone Speed Comparison (average of major cities in Japan)
SOFTBANK Mbps (iPhone 4S) 1.32
NTT DOCOMO Fastest 0.83Mbps (MEDIAS WP)
au 0.78Mbps (iPhone 4S)
* Publicly available information of MM Research Institute (Nov. 29, 2011). 3G down-link (5-10 PM). Average of measurements in 11 different spots nationwide.14 Unfair Battle
15 (Former) Allocation of Platinum Band
NTT DOCOMO au SOFTBANK
Yes Yes No Unfair allocation 16 JPY 14,900 CAPEX per User (mobile) JPY 11,700 JPY 10,400 (actual FY2010) Inefficient CAPEX
*Created by SOFTBANK CORP. based on respective companies’ publicly available information. Value was calculated by dividing CAPEX amount by average number of customers. au NTT DOCOMO SOFTBANK 17 Lack of Platinum Band Biggest weakness
18 March 1, 2012 Platinum Band Allocated to SOFTBANK (900MHz band)
19 (Future) Allocation of Platinum Band
NTT DOCOMO au SOFTBANK
Yes Yes Yes Fair fight 20 What is Platinum Band?
21 Characteristics of Platinum Band (1)
Coverage x3
2.1GHz Platinum band
*Test results on the 2.1GHz band and the 800MHz band 22 Characteristics of Platinum Band (2) 2.1GHz Platinum Band
Wide coverage 23 プラチナバンドの特性(2) Characteristics of Platinum Band (3)
2.1GHz Platinum Band Signal reflects Signal deflects
Obstacles Obstacles 24 Characteristics of Platinum Band (4)
Platinum Penetration Band
Fast decay 2.1GHz
25 July 25, 2012 Launch 900MHz Service
26 41k 900MHz Band Base Station Plan Quick expansion
16k
2012 ’13 ’14 ’15 ’16 (FY) *Base Station Plan 27 900MHz Band (%) 99.9% 96.1% 100 Population Coverage 80 Quick
60 expansion
40
20
2012 ’13 ’14 ’15 ’16 (FY) *Base Station Plan 28 Coverage Example (Kanto)
Former coverage 2GHz
29 Coverage Example (Kanto)
Almost complete
2GHz 900MHz
*Excluding some mountainous areas 30 (JPY bn) Consolidated CAPEX 500.0 500.0 (former plan)
420.5 JPY 1t in 2 years
2006 ’07 ’08 ’09 ’10 ’11 ’12 (FY) (target) 31 600.0 (JPY bn) Consolidated CAPEX 500.0 (new plan) 450.0 420.5 JPY 1.55t in 3 years
2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 (FY) (target) 32 900MHz = Global Standard
33 900MHz Compatible Devices (as of Mar. 1, 2012)
iPhone 4 iPhone 4S iPad 2 etc.
34 Ease Traffic Congestion Former Future
Platinum band
2.1GHz
2.1GHz 35 900MHz Compatible Device
PANTONE ®4 SoftBank 105SH Coming March 2012
36 Summer 2012 All models will be 900MHz compatible
37 Connect Anywhere
Downtown Underground Mountains
38 Operators’ Calling
39 Lifeline
40 Information Lifeline
41 = July 25, 2012 Launch 900MHz Service
42 Connect Anywhere
43 Information Revolution - Happiness for Everyone
44 45