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.

 

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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.

 

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With the worldwide mobile advertising market expected to double in the coming years, mobile promotion company, InMobi is looking to raise $200 million from Japanese giant, Softbank. The company aims to use these funds in order to reach scalable heights in the mobile ad market. Earlier, Google had acquired Admob for $750m in 2010, and Apple had launched iAd.

As per reports, Naveen Tewari, InMobi CEO, has said that the size of the investment and quality of investor validate the enormous potential in mobile today and strengthen their role in helping the industry evolve. Having already established them as a leader in mobile advertising on every continent, this is just the beginning. With a global leader like Softbank behind them, they are now well positioned to fully capitalize on the opportunity before them through substantially increased product innovation, deeper market penetration, and acquisitions across the mobile ad value chain.

The funds will be available in two tranches, one now and one in April 2012. They will also be used to hire more engineering talent and for acquisitions. Mr. Tewari has said that they are looking for technology and IP that they can combine with their existing scale and platform.

 

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Recent research reports have unearthed that deployment of Femtocells by mobile networks have more than doubled in the past 12 months. The report has found that although residential services represent the overwhelming majority of Femtocell deployments, the market has also started to see particularly strong growth in the enterprise sector.

­Almost a third of Femtocell deployments now include enterprise offerings, contrasting strongly with the situation 12 months ago when there were no non-residential deployments. There are 19 Femtocell deployments in total globally compared with nine last year.

These include six enterprise offerings, two urban deployments from Vodafone Qatar and Telefonica Spain as well as an outdoor rural service from SoftBank in Japan. These demonstrate that operator interest is not limited to residential services alone. Non-residential Femtocell services focus on the high-value enterprise market, public places such as metropolitan environments where they provide a capacity boost, and rural areas where network coverage has traditionally been uneconomical.

Furthermore, the past quarter has also seen important progress in Femtocell technology. In addition to more powerful models that cover larger areas, new low power USB-connected Femtocell designs promise to open up new service opportunities for operators. The second Femtocell plug fest also took place, indicating that the industry is close to seeing widespread standardized Femtocell deployments.

The researchers believe that while residential Femtocell deployments continue to grow, they are seeing changes in the market as a whole with operators realizing the technology can extend to the enterprise, rural and urban markets. Enterprise offerings are rapidly becoming a standard component of all Femtocell deployments. Beyond this, operators have already started to embrace urban Femtocells to overcome the coverage challenge, and outdoor designs for rural markets which could also revolutionize developing markets too.

Researchers expect that the Femtocell market will  experience significant growth over the next few years, reaching just less than 49 million Femtocell access points (FAP) in the market by 2014 with 114 million mobile users accessing mobile networks through Femtocells during that year. Healthy growth is anticipated throughout the forecast period with Femtocell unit sales reaching 25 million in 2014 alone.

The expansion of the Femtocell industry is also reflected in the growing membership of the Femto Forum, the Femtocell industry association, which now includes 74 vendors and 61 mobile operators representing over 1.71 billion mobile subscribers worldwide, across multiple wireless technologies (WiMAX, UMTS and CDMA) and accounts for 33% of total mobile subscribers worldwide.

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Vodafone has announced that its fourth quarter revenues increased by 3% to US$19.2 billion. ­The company has not yet released quarterly profit figures, but stated that its full year profits are now expected to be near around the upper end of the US$19.2 billion to US$19.7 billion range. The figure excludes the impact of the Verizon Wireless iPhone launch, which should be negative in the short term due to handset subsidies.

According to Vittorio Colao, Chief Executive, this is the fifth successive quarter of service revenue growth improvement, with strong results from India, Turkey, the UK and Vodacom. In addition, Verizon Wireless continues to show strong momentum. The company’s performance has been driven by the effective execution of our strategy to strengthen our businesses and deliver growth, particularly in data services and emerging markets.

Data revenue continues to drive the company’s growth strategy, with growth of 27.2% resulting from strong smartphone and mobile connectivity sales. On an annualized basis the Group’s data revenue has grown to over US$8 billion, exceeding messaging revenue for the first time ever.

Net debt at the end of 2010 was US$49 billion, slightly lower than at 30 September 2010, as free cash flow generation and the initial proceeds from the sale of the Group’s SoftBank interests broadly offset US$1.62 billion of shares bought back under the share buy-back programme and one-off tax related payments in the UK, India and China during the quarter.

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ZTE to launch first smartphone in Japan

ZTE Corp, china’s second-largest telecom equipment provider, and SoftBank, Japan’s third-largest telecommunications operator, have announced that their jointly developed Android smartphone, Libero, will be launched in the Japanese market later this month. Libero

The handset is ZTE’s first smartphone to be launched in Japan, and the second handset developed in collaboration with SoftBank. The first handset “SoftBank 840Z” was launched in October this year.

Libero, customized for the Japanese local market, is the lightest and thinnest smartphone among SoftBank’s newest products and is running the latest Android 2.2 operating system. The product has been launched in several European countries, including France, Germany, and the U.K.

ZTE and SoftBank jointly announced on the product release conference that they will launch eight models of terminal products in the Japanese market by next March.

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China’s ZTE has become the latest foreign vendor to attempt to hit Japan’s tough handset market, announcing an exclusive deal to supply smartphones to SoftBank, the country’s third-largest operator.

According to ZTE, SoftBank would launch the first jointly-developed smartphone this month. The device known as the ‘Libero’ runs on Google’s Android operating system, and ZTE claims it is the first Chinese smartphone to launch in Japan. It plans to launch a further eight handset models for SoftBank over the next few months, which have also been developed in collaboration with the operator.

According to figures from IDC, Sharp maintained its leadership in Japan’s handset market with a 18.9 percent market share in the third quarter, followed by Panasonic Mobile (16.6 percent), Fujitsu (15.1 percent) and Kyocera (12.7 percent). However, Apple has finally shown signs of denting the market with the iPhone, commanding a 12.2% share of the market in the quarter. Total mobile shipments in Japan rose 18.9% from a year earlier to reach 8.66 million units in the third quarter, the fourth consecutive quarter of growth.

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NTT DoCoMo, Softbank Corp and four other companies are reportedly vying for rights to provide new broadcasting services for portable digital devices in the country.

According to reports, the six firms the other participants being KDDI Corp, Nagase Brothers Inc, Gourmet Navigator Inc and an anonymous company have informed the Ministry of Communications of their interest, which is formulating its blueprint for the services.

As per reports, with mobile TV services due to be launched in April 2012, the ministry is currently assessing the number of service providers it will allow and the frequencies they will use once analogue TV broadcasts are switched off in July. It is understood that Nagase is mulling plans to use mobile TV to offer a remote educational platform, while Gourmet Navigator may use the service to promote restaurants by allowing viewers to download discount coupons for establishments covered.

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.

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.

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