Masayoshi Son Representative of the Softbank Group Softbank’S Connectivity Is Weak
Towards Network No.1 in Smartphone Era
March 21, 2013 Masayoshi Son Representative of the SoftBank Group SoftBank’s connectivity is weak
2 Reasons for Churn (March 2010) Biggest Weak signal weakness 26%
No service Others
*SoftBank data 3 Platinum Band Launched on July 25, 2012
4 Platinum Band Base Stations
Approx. 20K Exceeded & achieved ahead Target in FY2012 (submitted plan) 16K of schedule
July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 2012 2013 5 Even in heavy snow...
Installed base stations as planned
Installation work 6 As a result:
7 99.0% Smartphone Call Connection Rate (Japan)
98.5% 98.4% au 98.2% 98.0% 98.0% No.1 call connection rate
NTT DOCOMO 97.5%
97.0%
*Surveyed by IPSOS. Actual connection rate on calls made to 12,400 smartphone users. (SoftBank: 5,300 users, NTT DOCOMO: 3,400 users, au: 3,700 users) 2012/7/24 2013/3/12 8 Packet Connection Rate (Platinum band-compatible smartphones, Japan)
98%
96.6%
96% 96.2% 95.5% No.1 Packet Connection Rate
94%
92%
*Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from January 15 to March 19. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop)
2013/1/15 3/19 9 Are we No.1 just by chance?
10 To provide greater connectivity in smartphone era
11 Need to be No.1 in packet connectivity rate
12 Before the smartphone era Call- and text-centric
13 Today Time Spent on Smartphone / Day (2012)
Others Data-centric 6% call 14%
Data communication 80%
*Source: Smartphone market and usage report 2013 (Impress R&D/Internet Media Research Institute) 14 Mobile Data Traffic (Indexed at traffic volume of April 2008 = 1) 60 60x in Data 5 years
1 Voice1.3
April 2008 March 2013 *SoftBank data 15 Tremendous traffic growth in big cities
© 2013 ZENRIN © 2013 Mapabc.com Data SIO, NOAA, U.S. Navy, NGA, GEBCO © 2013 GIS Innovatsia, DATA+ 16 The Biggest issue in Smartphone Era
17 Packet Congestion
18 Packet Congestion Good signal reception but no data flow
19 Which one do you want to use? Speed Speed Stable Unstable at high speed
Packet congestion
Effective speed Effective speed Time Time *Image 20 Effective measures against packet congestion Small Cells
21 Allocate Traffic to Small Cells
Regular base station design Small cell design 1,000 users/cell 100 users/cell *Conceptual diagram 22 Number of Base Stations 190k (station) No.1 100k in number of 100k base stations
Mar. Mar. Mar. Mar. Mar. Mar. *Source: Report by Nomura Securities Co., Ltd.(August 29, 2012) 2007 2008 2009 2010 2011 2012 The sum of the number of indoor and outdoor base stations 23 Number of Users per Base Station (Subscriber number divided by base station number)
600 350 150
* Created by SoftBank Corp. based on reports by Nomura Securities Co., Ltd. (as of March 2012) 24 More Small Cells
AXGP base stations Public Wi-Fi spots 25k 450k 25 Number of Wi-Fi Access Points (public + households) (as of March 20, 2013)
Public Household 3.85m SoftBank 0.45m 3.4m
Public Household au 0.22m 1.65m 1.87m
Public NTT Overwhelming No.1 Docomo 0.1m in number of Wi-Fi spots
*Source: au: Earnings results for 3Q FY 2012 NTT DOCOMO: Corporate website 26 Moreover
27 Double LTE Launched on March 21, 2013
28 Mr. Sachio Semmoto Founder & Chairman Emeritus, Director eAccess Ltd.
29 Utilize 2 Companies’ LTE ×
30 Access to Less Congested Network
Share congestion status
31 Double LTE for Greater Customer Experience iPad Retina display model
iPad mini
iPhone 5
32 2.1G/1.7GHz LTE Base Stations Number of LTE base stations compatible with iPhone 5 38k Increase rapidly
21k 16k
au SoftBank SoftBank + EMOBILE (Number of base station licenses publicized Source: The Ministry of Internal Affairs and by the Ministry of Internal Affairs and (as of March 2014, internal plan) Communications in March 2013) Communications (update on March 11, 2013) 33 Imagine an expressway...
34 Competitor
35 Competitor
36 Competitor
37 Competitor
38 Competitor
Comfortable LTE Congested LTE
39 Average Communication Speed by Region ( All OS / LTE+3G) Kanto Chubu Kansai 7.7Mbps 7.8Mbps 6.8Mbps
4.1Mbps 4.0Mbps 3.9Mbps 3.9Mbps
3.0Mbps 3.1Mbps
NTT DOCOMO au SoftBank NTT DOCOMO au SoftBank NTT DOCOMO au SoftBank
*Source: RBB TODAY survey (March 13, 2013) Users’ communication speed measured with a speed measuring app for smartphones “RBB TODAY SPEED TEST” (November 1, 2012 - January 31, 2013) 40 March 21, 2013 Mobile phone services become available in trains @inosenaoki on all Tokyo Metro lines. (Governor of Tokyo) *Excluding section between Kotakemukaihara and Senkawa stations (due to construction of connection lines) 41 Full IP Backbone Osaka Tokyo
1Tbps
42 Full IP Backbone
Osaka Redundancy Tokyo
1Tbps Larger capacity Larger capacity Full mesh 10Tbps Full mesh
80% of transmission lines for macro cells are already upgraded to Gbps 43 Network in Smartphone Era
+ Platinum Band Small cells
Full IP backbone
44 Significant Accidents Reported to the Minister (since June 2011) SoftBank reported Date Carrier Affected users
2011/6/6 1.5m Zero 2011/8/16 1.1m significant 2011/11/2 1.1m accidents 2012/1/1 2.61m for over 660 days** 2012/1/25 2.52m Significant accident 2012/1/25 74k * subject to reporting 2012/2/9 1.3m Affecting more than 2012/2/11 6.15m 30k users for over 2
2012/12/31 Max. 1.8m straight hours
* including users of KDDI’s fixed-line communications service ** as of March 21, 2013 (Source: The Ministry of Internal Affairs and Communications “Telecommunication services accidents (FY2011)” and KDDI’s briefing session (January 16, 2013)) 45 As a result:
46 Call Connection Rate
47 Subject Call Connection Rate Survey Users agreed to survey (IPSOS, Global No.2 research firm) 30,000 users (10k users x 3 carriers) Calling system smartphone users Number of calls: included 15 times/user per month 12,400users
Analyze 190k call test data per month 48 99.0% Smartphone Call Connection Rate (Japan)
98.5% 98.4% au 98.2% No.1 98.0% 98.0% in call connection rate NTT DOCOMO 97.5%
97.0%
*Surveyed by IPSOS. Actual connection rate on calls made to 12,400 smartphone users. 2012/7/24 2013/3/12 (SoftBank: 5,300 users, NTT DOCOMO: 3,400 users, au: 3,700 users) 49 99.0% iPhone 5 Call Connection Rate (Japan)
98.5% 98.6% No.1 in iPhone 5 call connection rate 98.0% Other company
97.5%
97.1% 97.0%
*Surveyed by IPSOS. Actual connection rate on calls made to 2,500 iPhone 5 users nationwide. (SoftBank: 1,550 users, other company: 950 users) 2012/11/6 2013/3/12 50 Packet connection rate
51 Packet Connection Rate Survey (Patent applied for) 150m data communication Analysis system (Agoop Corp.) logs per month
*Users agreed to provide data 52 Packet Connection Rate Survey (Patent applied for) 150m data communication Analysis system (Agoop Corp.) logs per month
Handsets send location data every 30 min. or when on the move. Out of coverage or out of connection for 10 sec. is regarded as no connection
*Users agreed to provide data 53 Packet Connection Rate Survey (Patent applied for) 150m data communication Analysis system (Agoop Corp.) logs per month
GPS data Building data
Base station data Time data
*Users agreed to provide data 54 Packet Connection Rate Survey (Patent applied for)
Use for optimization Analysis system of base station design (Agoop Corp.)
55 Packet Connection Rate (Japan, platinum band-compatible smartphones)
98%
96.6%
96% 96.2% 95.5% No.1 in packet connection rate
94%
92%
*Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from January 15 to March 19. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop)
2013/1/15 3/19 56 iPhone 5 Packet Connection Rate (Japan)
98% 97.4% No.1 97% in iPhone 5 packet connection rate
96% 95.6% 95% Other company
94%
*Statistics analyzed by Agoop Corp. Total 30,000 iPhone 5s (15,000 for each operator) were randomly selected for analysis from February 4 to March 19. Data was collected through the disaster warning app (by Yahoo 2013/2/4 3/19 Japan) and Ramen Checker app (by Agoop) 57 Fully Utilize 150m Data Logs / Month
58 Packet Connection Rate by Region
Kanto Tokai Kansai SoftBank is No.1 SoftBank is No.1 SoftBank is No.1
98% 98% 98% 97.4%
96.4% 96.5% 96.2% 95.9% 95.9% 96.1% 95.6% 95.6%
92% 92% 92% 1/15 3/19 1/15 3/19 1/15 3/19
*Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from January 15 to March 19. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 59 Packet Connection Rate by Region Hokkaido SoftBank is No.1 Tohoku NTT DOCOMO is No.1 Hokuriku SoftBank is No.1
99% 98% 98% 96.7% 96.8% 96.6% 96.9% 96.7% 96.3% 96.6% 95.6% 96.0%
94% 94% 94% 1/15 3/19 1/15 3/19 1/15 3/19
Chugoku SoftBank is No.1 Shikoku SoftBank is No.1 Kyusyu SoftBank is No.1
98% 99% 97% 96.8% 96.2% 97.1% 96.7% 96.9% 96.1% 96.2% 95.8% 95.5%
91% 92% 93% 1/15 3/19 1/15 3/19 1/15 3/19 *Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from January 15 to March 19. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 60 Packet Connection Rate by Area Urban Suburb Mountainous area
SoftBank is No.1 SoftBank is No.1 NTT DOCOMO is No.1 97% 98% 98%
97.1%
95.8% 96.4% 96.3% 96.3% 95.3% 96.0% 94.9% 95.4%
93% 93% 93% 2013/1/15 3/19 2013/1/15 3/19 2013/1/15 3/19
*Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from January 15 to March 19. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 61 Packet Connection Rate by Hour (at top 1,000 railway stations by number commuters, platinum band-compatible smartphones) 98% No.1 97% in Packet Connection Rate by Hour 96%
95%
94% 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 (a.m.) (p.m.) *Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from February 15 to March 16. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 62 Packet Connection Rate by Landmark
Category Number of locations Railway station 1,000 96.0% 95.3% 95.6%
University 100 95.9% 95.4% 95.7%
Shopping mall 2,312 96.3% 95.9% 95.8%
Department store 231 95.7% 95.1% 95.2%
Electronics retail 2,329 store 96.5% 95.8% 95.8% Convenience store 33,322 96.6% 95.6% 95.9%
*Railway station: top 1,000 by number of commuters *University: top 100 by number of students *Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) on March 12. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 63 Packet Connection Rate by Landmark
Number of Category locations
Express way rest area 749 97.3% 97.2% 96.2%
Fast food eatery/ family-oriented restaurant 12,374 96.8% 95.8% 96.1% Hotel / inn 31,457 96.1% 95.7% 95.7% Theme park/ Leisure facility 1,071 95.8% 95.2% 94.9% Golf course 1,044 93.7% 97.2% 95.0%
Ski resort 240 90.2% 92.6% 91.8%
*Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) on March 12. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 64 Packet Connection Rate by Landmark 1,000 railway station University Shopping mall SoftBank is No.1 SoftBank is No.1 SoftBank is No.1 97% 100% 98%
96.0% 95.6% 95.9% 96.3% 95.3% 95.7% 95.9% 95.4% 95.8%
92% 92% 93% 1/15 3/12 1/15 3/12 1/15 3/12
Department store Electronics Retail Store Convenience Store SoftBank is No.1 SoftBank is No.1 SoftBank is No.1 99% 98% 98%
96.5% 96.6% 95.7% 95.8% 95.9% 95.2% 95.8% 95.6% 95.1%
91% 93% 94% 1/15 3/12 1/15 3/12 1/15 3/12
*Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from January 15 to March 12. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 65 Packet Connection Rate by Landmark Fast food / family-oriented restaurant Hotel / inn Leisure facility SoftBank is No.1 SoftBank is No.1 SoftBank is No.1 98% 98% 97%
96.8% 95.8% 96.1% 96.1% 95.2% 95.7% 95.8% 94.9% 95.7%
93% 93% 93% 1/15 3/12 1/15 3/12 1/15 3/12
Express way rest area Golf course Ski resort SoftBank is No.1 NTT DOCOMO is No.1 NTT DOCOMO is No.1 99% 99% 98%
97.3% 97.2% 92.6% 91.8% 97.2% 95.0% 90.2% 96.2% 93.7%
93% 91% 80% 1/15 3/12 1/15 3/12 1/15 3/12
*Statistics analyzed by Agoop Corp. Total 108,000 smartphones were randomly selected for analysis (SoftBank:36,000, NTT DOCOMO: 36,000, au:36,000) from January 15 to March 12. Data of platinum band compatible smartphones was collected through the disaster warning app (by Yahoo Japan) and Ramen Checker app (by Agoop) 66 We are No.1 not by chance but by logic
67 We are not satisfied yet.
68 Video
69 Mission of Telecom Operator
70 Communications = Life line
71