eAccess, eMobile, Y!Mobile

(c) 2014 Eurotechnology Japan KK www.eurotechnology.com eAccess - eMobile -Y!Mobile (12th version) May 26, 20141
EACCESS - EMOBILE -Y!MOBILE
Version 12 of May 26, 2014

by Gerhard Fasol PhD, Eurotechnology Japan KK

http://www.eurotechnology.com/

fasol@eurotechnology.com

this is a free try-out version with a few selected pages.

download the full latest version: http://www.eurotechnology.com/store/emobile/

EXECUTIVE SUMMARY -

EACCESS, EMOBILE ANDY!MOBILE
• eAccess was founded in November 1999 by Dr Sachio Semmoto, a veteran in Japan’s telecommunications
sector, to offer fixed line ADSL broad band internet access services.

• On May 1, 2005, Dr Sachio Semmoto and Eric Gan founded the mobile company eMobile as a subsidiary of
eAccess, and with financial partners including Goldman-Sachs and others. eMobile was the only new entrant
to Japan’s mobile sector which is building a nationwide wCDMA-HSDPA network from the beginning

• eMobile accepted subscriptions and started mobile services in theTokyo, Osaka and Nagoya regions from
March 31, 2007

• eAccess acquired ADSL provider ACCA networks, greatly expanding market share for ADSL (however,
subscriber numbers for ADSL are shrinking in Japan because of the shift to FTTH

• On March 31, 2011, eAccess absorbed its subsidiary eMobile.

• In autumn 2012, while SoftBank was engaged in negotiations to acquire SPRINT in the USA, Masayoshi Son
found that KDDI was in negotiations with eAccess to acquire eAccess. SoftBank intervened, and was quicker
to close the deal with eAccess, and on Jan 1, 2013, SoftBank acquired 100% of eAccess.

• On January 17, 2013, SoftBank sold part of the shares to 11 financial companies and telecom equipment
suppliers.This was done by issuing voting and non-voting shares, resulting in a complex structure which is
explained in this report.

• There have been plans forYahoo-Japan (Yahoo KK) to acquire eAccess from SoftBank, however these
discussions seem to have been abandoned, but there are discussions now of creating aY!Mobile virtual
operator based on eAccess mobile network.

• It has been announced that eAccess will be merged with Willcom in the near future.
2

EACCESS-EMOBILE -VERSION OVERVIEW
3
Version Date Revision and comments
1 March 19, 2007
2 August 31, 2008
3 September 29, 2008
4 November 1, 2008
5 November 11, 2008
6 January 16, 2009
7 June 1, 2009
8 July 21, 2009
9 December 12, 2010
10 December 13, 2010
Subscribe to this report, and we will regularly send you the latest versions.

!
subscription, monthly payment, you can end the subscription any time (no refunds):

!
subscription, annual payment, you can end the subscription any time (no refunds):

EACCESS-EMOBILE -VERSION OVERVIEW
4
Version Date Revision and comments
11 January 6, 2011
12 May 26, 2014 revision and update, reformat
13
14
15
16
17
18
19
20
Subscribe to this report, and we will regularly send you the latest versions.

!
subscription, monthly payment, you can end the subscription any time (no refunds):

!
subscription, annual payment, you can end the subscription any time (no refunds):

LICENSE
5
Thank you for purchasing licenses to our reports, and for your cooperation with our licensing conditions.

Only through your purchases can we continue to produce high-quality market reports from Japan

!
INTHE CASE OF SINGLE LICENSE: If you have purchased a single copy license of this report, you are not
permitted to copy this report except for a single back-up copy

!
INTHE CASE OF CORPORATE LICENSE: in the case that your company has purchased a corporate
license, you may distribute this report inside your company including protected corporate information
servers locked to the outside, but you cannot distribute this report outside your company

!
ANNUAL SUBSCRIPTION: we offer annual subscriptions for a particular report, and also for all our reports
in one single transaction at a great discount - please contact us for details. Corporations subscribing will
receive all updates at the time of publication, so that you can be sure to have the latest up-to-date
information

!
This research report comes without any warranty of any kind.The authors and Eurotechnology Japan K. K.
do not warrant that the information in this report is without error, nor that the information serves any
particular purpose. For legal advice please consult properly licensed legal professionals, for investment advice
please consult properly licensed ﬁnancial advisors.Trademarks mentioned are the property of their owners. 
Eurotechnology is a trademark or registered trademark in Japan and other countries.

EACCESS SLOGAN

!
A NEW AND MORE EFFICIENT
BROADBAND LIFE FOR ALL
6

AGENDA (LIST OF CONTENTS)
• Executive Summary

• eAccess today

• Financials, revenues, income, margins,ARPU

• Japan’s telecom landscape: eMobile and eAccess’ battleground

• eAccess and eMobile: Company structure and overview

• Dr. Sachio Semmoto

• Company structure

• Shareholder overview

• eMobile

• Service roll-out

• Shareholder structure

• Market share and subscriber and growth

• Strategy and positioning

• 3G and LTE mobile network and base stations (suppliers)

• Terminals and handsets

• MobileTV

• eAccess:ADSL and ISP

• eAccess market position

• Japan’s broadband markets

• AOL Japan

• Summary
7

EACCESSTODAY
8

EACCESSTODAY
• eAccess provides wireless broad band services and ﬁxed
line ADSL broadband services

• eAccess is integrated into the SoftBank group, management,
base stations, backbone network are shared.

• via a complex shareholding structure, eAccess has a certain
degree of management independence from SoftBank, but
ﬁnancially is 99.25% owned by the SoftBank group.
9

eMobile March 31, 2011 absorbed by eAccess
Founded
May 1, 2005 founded by Dr. Sachio Semmoto

March 31, 2007 start of mobile services
Founder Dr Sachio Semmoto and Eric Gan
Headquarters Tokyo
Stock Exchange -
Consolidated sales -
Number of employees -
Major share holders 100% eAccess
Major business areas wireless broadband services

FINANCIALS
14

MOBILE ARPU
17
2010 2011 2012 2013 2014 2015
0
1000
2000
3000
4000
5000
APRUYEN
US$ 10
US$ 20
US$ 30
US$ 40
eMobile ARPU
c2014EurotechnologyJapanKK
www.eurotechnology.com
As for most mobile operators globally, eMobile’s ARPU is steadily falling, and currently belowYEN
3000/month (US$ 30 / month)

eMobile is planning to turn around this decreasing ARPU by improving services

JAPAN’STELECOM LANDSCAPE- 
EMOBILE AND EACCESS’ BATTLEGROUND
18
For a detailed overview of Japan’s telecom markets, see

http://www.eurotechnology.com/store/jcomm/

EACCESS & EMOBILE
23

EACCESS AND EMOBILE
• eAccess and eMobile are lead by Dr Sachio Semmoto. eAccess was founded on November 1, 1999.

• eAccess is one of Japan’s leading ADSL service providers with about 2 million subscribers.

• However, with Japan’s trend to switch to FTTH the number of ADSL subscribers is decreasing.

• Consequently the number of eAccess subscribers is decreasing and we believe the prospects for eAccess are mainly for areas where NTT does not roll out FTTH,
e.g. for rural areas

• With the number of ADSL subscribers falling, eAccess is following a dual strategy:

• increase the ARPU from existing subscribers, e.g. by offereningVOIP via metal connections (service is provided by KDDI)

• Attracting ISP customers through AOL. For this purpose eAccess acquired AOL-Japan in July 2004

• eMobile was founded on January 5, 2005

• Worked towards and obtained a 3G mobile license in 2005

• 1.7 GHz mobile license awarded by Japan’s General Affairs Ministry on November 9, 2005

• Builds a nationwide 3G (wCDMA-HSDPA) network, started with networks inTokyo, Osaka, and Nagoya municipal regions and today covers most major regions of
Japan

• Initially data services only were offered, voice services started in 2008, initially only in the municipal areas with nationwide coverage via a roaming agreement with
DoCoMo.

• Data services started on March 31, 2007, subscriber acquisitions exceeded expectations

• WiMax license not granted

• eAccess has obtained a license for testing WiMax services from Japan’s General Affairs Ministry. eAccess is currently testing WiMax services from three base stations
in theTokyo area.

• However, the WiMax license was not granted. 2 licenses awarded to

• KDDI led consortium (offering services under the brand UQ Communications)

• Willcom.After bankruptcy of Willcom, this license was transfered to a new operator:Wireless City Planning.
24

DR. SACHIO SEMMOTO
• While SoftBank is driven by Masayoshi Son, eAccess and eMobile are driven by serial
mega-entrepreneur Sachio Semmoto.

• In contrast to SoftBank’s Masayoshi Son who was financially independent since his
student days by selling a patented invention, Sachio Semmoto initially worked several
years at Japan’s telecommunications giant NTT, before becoming an entrepreneur as
co-founder of the new telecommunications company DDI, which today is part of
KDDI. Semmoto had a leading role in building DDI in record time, leading to an IPO.
DDI was later acquired by KDD - the resulting merged company changed the name to
KDDI, reflecting the merger of KDD with DDI (for an overview of KDDI, including the
M&A history, see: http://www.eurotechnology.com/store/kddi/ ).

• Short personal history

• NTT: developed fibre optic systems

• 1974-1980: Japan’s representative to the ITU on optical fiber and ISDN

• Kyocera Corporation

• Co-Founder of DDI Corporation (today part of KDDI),

• IPO onTokyo Stock Exchange

• Merged with KDD, the resulting company named KDDI

• Professor at Graduate School of Business Administration of Keio University

• November 1999: founded eAccess

• October 2003: IPO on Mothers

• November 2004:Tokyo Stock Exchange, First Section
25

EACCESS/EMOBILE - COMPANY STRUCTURE

BEFORE ABSORPTION OF EMOBILE BY EACCESS
26
47% 53%
Investors
founded: January 5, 2005
Capital shares and
reserves: YEN 143.2 billion
wCDMA-HSPDA start:
March 31, 2007
Target:
5 million subscribers
by March 2012
founded: November 1, 1999
Capital shares and reserves: YEN 22.6 billion
Employees: 600, Tokyo Stock Exchange (1st Sect)
ADSL wholesale
1.92 million
subscribers
AOL-Japan
ISP, acquired:
July 2004
239,000 subscr.
WiMax
test license
testing
(c)2007EurotechnologyJapanKK
• This ﬁgure shows the structure of the eAccess/eMobile group at the time when eMobile was
founded in 2005.

• Since this time, eAccess and eMobile have been merged into eAccess, and has been acquired by
the SoftBank group.

EMOBILE SHARE OWNERSHIP IN EACCESS LTD (CAPITAL=YEN 17.1 BILLION)

BEFORE ABSORPTION BY EACCESS
27
Shareholder Number of Shares Percentage
Morgan Stanley 259,260 17.74%
Sachio Semmoto 101,810 6.96%
The MasterTrust Bank of Japan (Trust
Acct.)
98,132 6.71%
Eric Gan 94,765 6.48%
Goldmann Sachs 67,760 4.63%
Nomura Int (Hong Kong) 48,030 3.28%
Societe General (Paris) 43,364 2.96%
eAccess Holdings LLC 22,220 1.52%
Bank of NewYork 20,696 1.41%
BBH (LUX) Fidelity Active Strategy –
Japan Fund
19,887 1.36%
Other (27,719 share holders) 685,386 49.90%
Total shares issued 1,461,310 (810,607 foreign) 100% (55.5% foreign holders)

MARKET SHARE AND SUBSCRIBER GROWTH
34

EMOBILE NET ANNUAL GROWTH
• Initially, in the start-up phase, eMobile achieved high annual growth on the order
of 1 million new subscribers per year, however this rapid growth soon slowed,
and in the ﬁrst quarter of 2014, eMobile even lost subscribers to competitors.
39
1996 1998 20002000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
0
2000000
4000000
6000000
8000000
10000000
netgrowthyear
Net annual growth of subscriptions
DoCoMo
KDDI
SoftBank
eMobile
Willcom
Astel
Vodafone
UQ
J Phone
WCP
iPhone
SoftBank
July 11, 2008
iPhone 4S
KDDI SoftBank
Oct 14, 2011
i Mode
Feb 22, 1999
iPhone 5
Softbank KDDI
Sept 21, 2012
Softbank acquires
Vodafone KK

PREPAY
41

EM-CHARGE (PREPAY)
• eMobile achieved approx. 90,000 prepaid users by mid-2011, however stopped disclosing prepaid usage numbers by
mid-2011, therefore the graph above ends in mid-2011.

• in any case, the share of prepaid usage among eMobile users is very small.
43
2007 2008 2009 2010 2011 2012 2013 2014
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
110000
120000
subscriptions
Prepaid mobile phones eMobile
eMobile

STRATEGY AND POSITIONING
44

MVNO BUSINESS
48

MVNO BUSINESS
• The Japanese government has been actively promoting the development of MVNO business development to increase
the number of wireless operators offering services to consumers and businesses.

• Astonishing government and industry, SoftBank and eMobile announced an MVNO agreement, where SoftBank will use
eMobile’s wireless data network to offer ﬂat-fee data-only services targeting wireless data connectivity for laptops and
other portable devices.

• Previously, SoftBank was the only operator in Japan which could not offer ﬂat-rate data connection for laptops, due to
limited network capacity.
49

SPECTRUM LICENSE AND BASE STATIONS
50

HOW MANY LOW POWER REPEATERS DOES EMOBILE HAVE?
• eMobile has about 45,000 low power repeaters installed
57

LTE
58

TERMINALS AND HANDSETS
61

EACCESS
• eAccess offers ADSL broadband access and ISP services to approx. 2 million subscribers

• The number of subscribers is falling, as subscribers switch to FTTH, which has much higher connection speed

• eAccess is seeking to add services to increase ARPU and to gain additional subscribers for the ﬁxed line services:

• eAccess acquired the Japan subsidiary of AOL from DoCoMo in order to offer ISP services

• eAccess entered into a cooperation with KDDI to offerVOIP telephony over copper lines to subscribers. eAccess
acts as a reseller of KDDI services

• Recently eAccess acquired ACCA Networks and greatly expanded the combined market share (ACCA networks
had applied for a WiMax license in cooperation with NTT-DoCoMo, however was not awarded a license, which
greatly weakened ACCA’s position. In addition,ADSL markets are shrinking in Japan with the growth of FTTH)
70

DSL BROADBAND MARKET SHARES
• eAccess has achieved approx. 23.6% market share in Japan’s shrinking
DSL market
74
Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012
0
10
20
30
40
50
60
70
80
90
100
DSLmarketshares
DSL market shares in Japan
SoftBank 38.8
eAccess 23.6
NTT East 16.9
NTT West 17.7
Other 3c2012EurotechnologyJapanKK

AOL
75

SUMMARY
77

SUMMARY
• eAccess today is part of the SoftBank Group, and is jointly owned by SoftBank and 11 financial companies and
equipment suppliers. Management, base stations, spectrum, network, distribution networks are jointly management
within the SoftBank group.

• eAccess is one of Japan’s leading fixed line broadband (ASDL) service providers, and with the acquisition of ACCA
Networks, could recently expand market share – in the shrinking ADSL market

• eMobile started operations on March 31, 2007, as the fifth mobile service provider in Japan.

• Initially eMobile offered HSDPA data services only, expanding from theTokyo, Osaka and Nagoya areas, and recently
started also voice services, with national coverage with roaming over DoCoMo’s network.

• eMobile’s HSDPA radio network today covers about 85% of Japan’s population

• eMobile announced that because of careful purchasing decisions, eMobile’s network investment cost and basestation
acquisition cost is 5 to 8 times lower than DoCoMo’s

• With a very competitive data value proposition, eMobile could attract more subscribers than expected. It has been
announced that eAccess will be merged with Willcom in the near future.
78

MORE INFORMATION:
• Blogs:

• http://fasol.com/blog/

• http://eurotechnology.com/blog/

• Reports:

• http://www.eurotechnology.com/store/
79

CONTACT
• Eurotechnology Japan KK

• http://www.eurotechnology.com/

• CEO: Gerhard Fasol PHD

• Fasol@eurotechnology.com

• Mobile: +81-90-8594-6291
80

eAccess, eMobile, Y!Mobile

Recomendados

Recomendados

Mais conteúdo relacionado

Mais de Gerhard Fasol

Mais de Gerhard Fasol (17)

Último

Último (20)

eAccess, eMobile, Y!Mobile