Softbank still ahead of KDDI in terms of user additions (Japan)
Japanese telecommunications operators, Softbank Corp. and KDDI Corp., have been competing with each other in an attempt to increase their presence in the growing smartphone market. According to reports, Softbank has once again emerged as the winner in terms of user additions by the operators. As per sources, Softbank reported net additions of 247,600 new mobile subscribers in October, while KDDI added 196,900 subscribers during the same period.
According to industry reports, Softbank was the sole carrier of the iPhone and had a monopoly on the market for three years, till Apple appointed KDDI to sell its latest iPhone 4S. KDDI Corp.’s broader network for new subscribers indicating better reception was considered by many analysts to further intensify competition between the two firms.
KDDI to replace 2 million Sony made lithium-ion batteries (Japan)
KDDI Corp., Japan’s second-largest mobile-phone operator, will replace the battery packs made by Sony Corp on two million handsets over concerns of the device overheating.
According to reports, KDDI said in a statement that the replacement involves two handsets of Casio and one by Hitachi. Further, the company added that the first overheating problem was reported in January last year but no decision was made to replace the battery packs at that time because the incident occurred after the battery had been damaged. However after two customer complaints in 2010 followed by six this year, wherein the damaged batteries emitted smoke while being recharged, KDDI announced replacing the batteries free of charge stating that the batteries may heat and melt.
Industry analysts say that while this expense is not of much significance to a large organization like Sony, it does raise concerns regarding the reliability of its products. In 2006, Sony recalled as many as 9.6 million lithium-ion batteries, the largest recall in consumer-electronics industry, over concerns that the batteries could overheat and become fire hazards.
KDDI fell 3.4 percent closing at $6,950.98 in Tokyo, marking a third straight day of declines. Sony dropped 0.5 percent while Casio and Hitachi fell by 2.4 percent and 0.8 percent respectively.
KDDI to sell iphone 5, shares up by 2.1% (Japan)
According to reports, KDDI Corp. has signed an agreement with US based Apple Inc. for the sale of its iPhone 5. The deal is a major concern for Softbank Corp., who had a monopoly on the sale of iPhones in Japan for the past three years.
KDDI is expected to sell the iPhone 5 in November, a little later than its expected release in the US. This comes as great news for Apple iPhone loyalists and android users looking to switch to the iPhone. For KDDI, this contract will help the carrier enhance its customer base, as many users shift operators when they buy an iPhone. However for Softbank on the other hand, losing the monopoly could hamper the company’s earnings, which is largely supported by the iPhone.
Sources claim that the speculation around this deal has caused KDDI’s shares to rise up by 2.1% while Softbank’s shares saw a dip of 7.3% on the Tokyo Stock Exchange.
KDDI plans to launch LTE in 2012 (Japan)
KDDI President and Chairman Tadashi Onodera has revealed that his company will launch Long Term Evolution (LTE) technology commercially in 2012.
According to reports citing the head of Japan’s second largest operator by subscribers, has revealed that KDDI has been working on the plan for two years.
The company is apparently interested in offering flat-rate LTE services, with Onodera stating that having been the first operator in the world to launch flat-rate mobile data tariffs, it can make the strategy economically viable.
Japan’s KDDI invests in Mobile Banking Service Provider
Japan’s KDDI Corp has invested US$22 million in USA based Microfinance International Corp. (MFIC) to support its global expansion. This will help in developing an open mobile payment platform worldwide.
According to KDDI, it aimed to combine its relationship with over 600 carriers and MFIC’s money transfer solution, which is connected to a network of payers in 90 countries to develop mobile banking applications.
According to Takashi Tanaka, President of KDDI, the company is seeing more and more convergence of telecommunications and financial services going on worldwide, still most of them are local movements. In such circumstances, the company is very excited and looking forward to the collaboration with MFIC who has extensive financial expertise, bringing both of them a chance for true global business development.
As the first step of collaboration, in January 2011 Locus Telecommunications, KDDI’s subsidiary headquartered in New Jersey is launching a new service in the US, allowing customers to send money overseas using a multi-purpose calling card.
According to CGAP, a micro-finance group based at the World Bank, the number of those who lack a bank account but have mobile phone will reach 1.7 billion in 2012, about 70% of the entire unbanked population worldwide.
ZTE begins to deploy UQ’s WiMAX pico base stations
Chinese equipment vendor ZTE has begun to deploy WiMAX pico base stations for UQ Communications, KDDI’s WiMAX joint venture with Intel Capital, East Japan Railway Company, Kyocera Corp, Daiwa Securities Group and the Bank of Tokyo-Mitsubishi.
UQ had launched commercial services in the country in July 2009, initially in parts of greater Tokyo, Nagoya, Osaka, Kyoto and Kobe, but subsequently extended coverage to all major cities by the end of fiscal 2010.
ZTE is supplying and installing its ZXMBW E9201 units under the contract which it claims was selected by the WiMAX operator because of its small size, light weight, zero footprint, flexible installation and rapid deployment.
Tanaka Takashi –the new President of KDDI
KDDI’s Takashi Tanaka, has officially took the reigns of KDDI Corporation, after being named as Tadashi Onodera’s successor three months ago. Tanaka was Senior Managing Executive Officer at KDDI and former head of Japanese WiMAX provider and group subsidiary UQ Communications.
In his inaugural speech, Tanaka highlighted KDDI’s forerunner history as the first mobile carrier in Japan to offer 3G service, providing flat-rate data plans and GPS-related services before competing companies could catch up, but admitted that it missed the mark with smartphones, having been overtaken by SoftBank with its iPhone and NTT DoCoMo with the Sony Ericsson Xperia. KDDI is now experiencing a profit decline that is expected to continue next year, taking up the back behind DoCoMo and SoftBank in the number of new subscribers.
Tanaka hopes to increase KDDI’s smartphone market share in the next business year and catch up to the other players in the market, while also building up a tablet device lineup, both with 3G and without.
With the company’s holdings in landline broadband, cable, 3G, and WiMAX, KDDI intends to introduce a new business model that involves seamless multi-device and multi-network communications.
KDDI Eyes M&A to reach consumers in Asia
KDDI Corp. President Takashi Tanaka has claimed that the company wants to offer consumer-oriented services in neighboring Asian countries, whose cultures are similar to Japan’s.
According to Tanaka, given that they have no local presence there, they will discuss entering the markets through merger and acquisition (M&A) projects with influential partners.
When asked about the company’s smartphone strategy in Japan, Tanaka stated that the KDDI will definitely catch up with rivals, adding that he don’t think it will take much time. The company will introduce products similar to Apple Inc.’s iPad in several years.
Softbank to buy 100% stakes of Willcom
Softbank, a Japanese operator has agreed to acquire 100% stakes of struggling personal handyphone service (PHS) operator Willcom.
As per the reports, the deal will go ahead if the Tokyo district court approves Willcom’s rehabilitation plan.
The acquisition would award an extra 3.9 million subscribers to Softbank, taking its total to 27 million and narrowing the gap between closest rival KDDI, with its 32 million subscribers.
As per the initial proposal, Softbank and investment firm Advantage Partners were to spin-off Willcom’s next-gen PHS into a new business. But the plan only involved providing financial assistance for the legacy PHS unit.
But in August, Softbank had announced that it had agreed to the Willcom trustee’s request to provide direct assistance to the PHS unit as well.
Willcom is unable to battle efficiently against Softbank, KDDI and NTT DoCoMo. Its customer base is very small compared to the overall market size of 116.3 million mobile phone and PHS subscribers as of the end of March.
