Continued Growth of the Mobile Business and Expansion of MVNO Services

「In 5G Lifestyle, which comprises mobile communications and internet-related services for individuals, the company is pursuing further user growth under its “TONE IN” strategy. The strategy extends the technologies and services developed through TONE MOBILE, the group’s smartphone service using its proprietary technology, to smartphones made by other companies and a wide range of devices, and into other fields including IoT. The number of eligible smartphone models has been expanded to 160.」

「In the 5G Infrastructure Support business segment, the scale of the support business for MVNOs as an MVNE expanded steadily. As a result, revenue was ¥7,424,594 thousand, up 4.4% year on year, and segment profit was ¥1,341,895 thousand, up 15.6% year on year.」

「Under these conditions, the scale of the support business for MVNOs as an MVNE expanded steadily in the 5G Infrastructure Support business segment. As a result, revenue was ¥4,924,334 thousand, up 4.1% year on year, and segment profit was ¥906,637 thousand, up 23.6% year on year.」

「Under these conditions, the group performed steadily as a result of expanding the scale of its support business for MVNOs as an MVNE. As a result, revenue in this segment was ¥2,427,533 thousand, up 4.3% year on year, and segment profit was ¥438,451 thousand, up 11.5% year on year.」

「With a view to addressing the social issue of internet dependence, which is a concern worldwide, the company began offering specialist consultations on excessive smartphone use through its next-generation online health consultation service “TONE Care.” It also implemented a marketing strategy centered on performance-based advertising and invested resources in field marketing to strengthen promotional activities at each store, with the aim of increasing the number of contracts through NTT DOCOMO’s store network.」

「To further improve convenience, the company upgraded the service in August so that users could use one gigabyte of “video tickets” each month without changing the monthly base fee. In September, it launched the “Senior Discount,” which reduces the monthly base fee to ¥0 for up to one year for users aged 60 or older whose monthly data usage is below 300 MB. It also implemented a marketing strategy centered on performance-based advertising and invested resources in field marketing to strengthen promotional activities at each store, with the aim of increasing the number of contracts through NTT DOCOMO’s store network.」

「In 5G Lifestyle, which comprises mobile communications and internet-related services for individuals, the company began selling the new “TONE e22” on 1 June. The device uses the group’s proprietary technology and enables users to participate in “TONE Labo,” a user-participation project for testing new ways to use smartphones in the 5G/web3/metaverse era. Many TONE e22 users have already joined TONE Labo. Building on the results of the media-mix advertising strategy implemented in the previous consolidated fiscal year, including web commercials, posters and brochures aimed at raising awareness, the company sought to expand sales in the current consolidated fiscal year by implementing a marketing strategy in cooperation with the Full Speed Group, centered on performance-based advertising, to increase the number of contracts through NTT DOCOMO’s store network.」

「Following its participation in NTT DOCOMO’s “docomo Economy MVNO,” the company began offering “TONE MOBILE for docomo” at approximately 2,300 DOCOMO shops nationwide operated by NTT DOCOMO. It then began sales of the iPhone SIM “TONE for iPhone” on 22 December 2021 and the Android device “TONE e21 rev.2” on 24 February 2022, and also focused on developing the new Android device “TONE e22,” scheduled for release on 1 June 2022.」

「In 5G Lifestyle, which comprises mobile communications and internet-related services for individuals, the company joined NTT DOCOMO’s “docomo Economy MVNO” in addition to its existing online sales and in-store sales at Camera no Kitamura, and began offering the iPhone plan “TONE for iPhone” under the “TONE MOBILE for docomo” brand. It also implemented an integrated advertising strategy aimed at further increasing awareness and expanding sales.」

「Under these conditions, the group’s support business for communications operators expanded, while its support business for ISPs also remained solid. Services for general corporate customers, including cloud-related services supporting the internet-related business, also progressed steadily. In 5G Lifestyle, which comprises mobile communications and internet-related services for individuals, the group sought to expand sales channels by joining NTT DOCOMO’s “docomo Economy MVNO,” in addition to its existing online sales and in-store sales at Camera no Kitamura. It plans to begin offering the group’s TONE MOBILE branded products as “TONE MOBILE for docomo” (provisional name) at approximately 2,300 DOCOMO shops nationwide operated by NTT DOCOMO.」

「In addition to expanding support services for communications operators, including the well-received MVNE unlimited voice-calling service, support services for ISPs also remained solid. Services for general corporate customers, including cloud-related services supporting the internet-related business, also progressed steadily.」

「The number of MVNO companies adopting “freebit MVNO Pack,” the MVNO support package service provided by the company as an MVNE, increased, and the company also focused on expanding sales of MVNO services for end users. In its smartphone service “TONE MOBILE,” it began selling the new “TONE e21,” which offers substantially improved AI functions and basic performance.」

「DTI’s smartphone service “TONE MOBILE” launched the “Go To Anshin Smartphone” campaign to increase users, making the price of its current 2020 model, the TONE e20, ¥0. As a result, revenue was ¥12,015,560 thousand, up 3.6% year on year, and segment profit was ¥1,019,368 thousand, up 135.7% year on year.」

「As in the first quarter, the spread of home-based learning and telework associated with efforts to prevent the spread of the infection led to increased use of rich content, such as online classes and meetings, online video, and games, as well as social media, through home Wi-Fi environments. Although the cost ratio for fixed-line network services remained high, increased demand for communications infrastructure services, including the MVNO support package service, drove increases in revenue and profit. As a result, revenue was ¥8,126,786 thousand, up 4.2% year on year, and segment profit was ¥590,951 thousand, up 71.2% year on year.」

「As the use of telework spread rapidly, increased demand for communications infrastructure services, including the MVNO support package service, drove higher revenue and doubled profit.」

「In the mobile business, which the company positions as one of its continuing growth businesses, effective 1 December 2019, DTI succeeded to all of the business of TONE MOBILE, which provides low-cost smartphone services as an MVNO, through an absorption-type company split. TONE MOBILE, the low-cost smartphone service, worked to increase its user base, including by launching new smartphone devices.」

「Within the group, effective 1 December 2019, DTI succeeded to all of TONE MOBILE’s business through an absorption-type company split.」

「In the B2C market, the group and its customers, independent MVNO service operators, were affected by aggressive new plans from major mobile carriers and their sub-brands, but the market is expected to remain on a growth trajectory.」

「Although the cost ratio for fixed-line network services remained high, revenue increased due in part to the solid performance of the MVNO support package service.」

「The number of MVNO companies to which the company provides services as an MVNE increased, and it also focused on expanding sales of MVNO services for end users. In addition, deliveries of new TONE MOBILE smartphones contributed to revenue of ¥8,281,048 thousand, up 2.0% from the previous consolidated fiscal year, and segment profit of ¥123,331 thousand, compared with a segment loss of ¥268,159 thousand in the previous consolidated fiscal year.」

「The MVNO support package service “freebit MVNO Pack,” provided by the company as an MVNE, performed steadily. DTI, which operates an MVNO business for end users, promoted user growth through promotional campaigns. TONE MOBILE, which also provides low-cost smartphone services to end users as an MVNO, expanded its proprietary services and implemented sales promotion campaigns tailored to its user base, working to further increase its users. It also worked with the company to develop the next new device, “TONE e19.”」

「In addition to the solid performance of the MVNO support package service, the company reviewed the lineup of MVNO services for end users and took other measures. As a result, revenue was ¥4,109,697 thousand, down 7.0% year on year, reflecting lower wholesale line prices from telecommunications carriers, while segment profit was ¥76,071 thousand, compared with a segment loss of ¥312,489 thousand in the same quarter of the previous year, owing to an improved profit structure.」

「The MVNO support package service “freebit MVNO Pack,” provided by the company as an MVNE, performed steadily. The company also obtained designation from the Ministry of Internal Affairs and Communications for “060-0,” a telephone number for fixed-mobile convergence (FMC), for “Mobabiji,” its communications service integrating fixed-line and mobile communications. DTI, an MVNO, worked to improve its profit margin by reviewing its service lineup. TONE MOBILE, which also provides low-cost smartphone services as an MVNO, worked to introduce new services, including making its proprietary “peace-of-mind and safety” services available on SIMs for iPhones in addition to its existing original devices. The iPhone SIM service also began being sold in stores in addition to online.」

「As a result, the number of companies using “freebit MVNO Pack,” the MVNO support package service provided by the company as an MVNE, increased. DTI, an MVNO, sought to differentiate “DTI SIM” from competitors by introducing new plans that swiftly reflected user needs and implementing promotional campaigns. TONE MOBILE, which also provides low-cost smartphones as an MVNO, worked to further expand its user base by implementing campaigns tailored to its users and strengthening its proprietary services.」

「In the mobile business, which the company positions as one of its continuing growth businesses, the MVNO market continued to expand despite changes including the expansion of sub-brands by major mobile carriers, the entry of more operators and industry consolidation. As a result, the cumulative number of SIM cards issued for operators using “freebit MVNO Pack,” the MVNO support package service provided by the company as an MVNE, increased. DTI, an MVNO, sought to differentiate “DTI SIM” from competitors by introducing new plans that swiftly reflected user needs and implementing promotional campaigns. TONE MOBILE, which also provides low-cost smartphones as an MVNO, released the new “TONE m17” and worked to further expand its user base by implementing campaigns tailored to its users and strengthening its proprietary services.」

「In the mobile business, which the company positions as one of its continuing growth businesses, the number of SIM cards issued for operators using “freebit MVNO Pack,” the MVNO support package service provided by the company as an MVNE, increased as the MVNO market continued to expand. The company also upgraded the network environment. DTI sought to differentiate its MVNO service “DTI SIM” from competitors by introducing new plans and taking other measures that swiftly reflected user needs, with the aim of further increasing its user base. TONE MOBILE implemented campaigns aimed at increasing its user base and worked on developing its next smartphone, “TONE m17.”」

「As the MVNO market continued to expand, the number of operators adopting “freebit MVNO Pack,” the MVNO support package service provided by the company as an MVNE, increased, as did the number of end users acquired by those operators.」

「The number of operators adopting the MVNO support package service “freebit MVNO Pack” increased, as did the number of end users acquired by those operators. The company also supplied TONE MOBILE, one of the service’s adopting operators, with its dedicated smartphone, “TONE m15.” In addition, improved operating efficiency through online integration with 株式会社NTTドコモ’s customer management system enabled the company to offer services at more competitive prices.」

「In the mobile business, which the company positions as a continuing growth business, the number of SIM cards shipped to operators using its MVNO support package service “freebit MVNO Pack” increased. Its consolidated subsidiary 株式会社ドリーム・トレイン・インターネット (Dream Train Internet, Inc.; “DTI”) also maintained a solid user base for the cost-effective MVNO service “DTI SIM” by introducing new plans and implementing campaigns based on user needs. In addition, TONE MOBILE, an equity-method affiliate, increased its user base by expanding the network of “TONE” retail stores operated by CCC Group company 株式会社TSUTAYA and implementing various campaigns. It also expanded services focused on user satisfaction, including collaboration with fellow CCC Group company 株式会社Tポイント・ジャパン and the provision of its own family-oriented app. As a result, shipments of the company’s smartphones and sales of network capacity increased.」

「In the mobile business, which the company positions as a continuing growth business, the number of users acquired by operators offering the company’s MVNO support package service “freebit MVNO Pack” continued to increase from the previous fiscal year, and MVNO services for inbound travelers to Japan also remained solid. The company also expanded its business phone service “Mobabiji,” which stands apart from competitors by combining high voice quality enabled by its technology with low call charges for external calls made via NTT East and NTT West’s “Hikari Denwa” service.」