Wireline operations hurt Softbank

9 Feb 2005

The Japanese ISP Softbank has seen a rise in sales but has also increased net losses as it pushes into the fixed line telephony market. The firm reported a net loss of JPY26.5 billion (USD251 million) for its third quarter ended 31 December, up from a loss of JPY16.4 billion twelve months earlier. Sales rose 89% to JPY258.1 billion. Softbank acquired its fixed line unit Japan Telecom for JPY143.3 billion in July last year but is facing increasing competition as the dominant operators NTT and KDDI introduce cheaper rates and discount packages. Japan Telecom currently has 860,000 wireline customers, while its main broadband internet business now has 4.71 million subscribers. Softbank is hoping to transform itself into a full service provider by acquiring a 3G mobile concession.