Rising Line and Bandwidth Procurement Costs and Equipment Supply Shortages
First written in FY2017. 2 of 4 entries say "Worsened", first in FY2020. Latest entry: FY2022.
FreeBit moved to the "Worse" side of this theme in 2020, 6 years before the typical company in this theme (2026).
The whole theme swung hardest in 2025: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2022WorsenedAnnual report
「If further equipment supply shortages or technological innovations requiring massive capital investment occur, including equipment price increases caused by political and economic international competition among equipment manufacturers and semiconductor shortages, these factors could constrain the operation and expansion of our business. Delays in procurement and higher costs could result in lost opportunities and affect profitability.」
In addition to the existing risks of equipment supply shortages and higher procurement costs, the Company specifies semiconductor shortages, soaring equipment prices and procurement delays caused by international competition. - FY2020WorsenedAnnual report
「In addition, as the government's promotion of work-style reform and the recent COVID-19 pandemic have increased the use of working from home and videoconferencing, demand for household communications has risen. As a result, concerns have been raised across the internet industry about instability in the supply-demand balance for network infrastructure and the possibility of bandwidth shortages.」
Against a backdrop of increased demand for communications due to working from home and videoconferencing, the Company additionally identifies the risks of instability in the supply-demand balance for network infrastructure and bandwidth shortages. - FY2019RestatedAnnual report
「We are working to address these conditions by operating a highly efficient network, including improving the efficiency of circuit and bandwidth procurement and optimizing data, and by making maximum use of the IPv6 expertise we have developed over many years. However, if further equipment supply shortages, including those resulting from international competition among equipment manufacturers, or technological innovations requiring massive capital investment occur, these factors could constrain the operation and expansion of our business, while higher procurement costs could adversely affect profitability.」
The Company outlines measures including more efficient circuit and bandwidth procurement, data optimization and use of IPv6 technology, while continuing to identify the risks of equipment supply shortages, massive investment requirements and higher procurement costs. - FY2017First statedAnnual report
「If equipment supply shortages worsen further, these factors could constrain the operation and expansion of our business, while higher procurement costs could adversely affect profitability.」
The Company cites as risks increased demand for bandwidth, delays in developing network circuits, and potential business constraints and higher procurement costs resulting from bandwidth shortages.