Boston, MA, 03/11/2014 – Softbank Corp (USA) (OTCMKTS:SFTBF)’s President Masayoshi Son, wants to change the U.S broadband and wireless segment and try for an encore of his performance. He has changed the way Japan connects to the internet and is hopeful of recreating the same model also in the U.S.
The Japan Story:
Son took over Softbank Corp (USA) (OTCMKTS:SFTBF) from Vodafone Group Plc (ADR) (NASDAQ:VOD) in 2006. At that time it was ranked third in Japan and was struggling to make ends meet. But Son had a plan to reinvent the company. He priced the products very competitively to revive growth and invested heavily in upgrading the network. Besides this, he also changed the name to SoftBank, then the second largest internet service provider. In order to improve the brand image, he hired Hollywood actors and actresses. But while these changes looked cosmetic on the surface, the changes he made to the network were also phenomenal. He invested heavily so that his networks were capable to handle video and other data. He increased his base stations tenfold against others threefold. These measures helped in improving the market share and user base. The company now has a user base of 35 million and a market share of almost 25%. The company also was the first to feature Apple Inc (NASDAQ:AAPL)’s iPhone.
The American Story:
Now Softbank Corp (USA) (OTCMKTS:SFTBF) has eyes on the American consumers. Son has been trying to take over T-Mobile US Inc (NYSE:TMUS). The deal is facing resistance from regulators as Son has a substantial stake already in Sprint Corporation (NYSE:S). Regulators are worried over the effects of the merger between Sprint and T-Mobile. Son believes that the consolidation of the companies will improve the services to the consumers. Though he has announced to unleash a price war if the consolidation is approved, his plans are deeper than just price wars. He plans to upgrade the infrastructure so that broadband speeds can be delivered across wireless networks, the way it happens in Japan.
Should he succeed, he will manage to break the monopoly of the cable operators.