NTT has run out of patience due to Docomo’s negligence! Competitive lowering of mobile phone rates starts with making it a wholly owned subsidiary: J-CAST Company Watch[Visualización de texto completo]



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NTT (holding company) announced on September 29, 2020 that it will convert NTT Docomo, the largest mobile phone company under its umbrella, into a wholly owned subsidiary. In the background, DoCoMo is believed to be losing influence in the mobile phone market, and that NTT’s bag of patience has been cut by internal reforms and the waistline constitution.

What is the goal of making NTT a wholly owned subsidiary by investing the largest 4.2 trillion yen TOB (Offer to Purchase) fund in history?

Prime Minister Yoshii Suga has established the reduction of mobile phone rates as the main policy of the administration. Will making Docomo a wholly owned subsidiary lead to a reduction in mobile charges for other major mobile companies, KDDI (au) and Softbank? When you read the tone of the big media …

  • Prime Minister Yoshii Kan, whose main policy is to reduce mobile phone rates

    Prime Minister Yoshii Kan, whose main policy is to reduce mobile phone rates

  • Prime Minister Yoshii Kan, whose main policy is to reduce mobile phone rates

The “reduction of mobile phone rates” is the climax of the birth of the Kan administration

Otemachi First Square, where the NTT (holding) headquarters is located (from NTT press release of October 28, 2013)

Otemachi First Square, where the NTT (holding) headquarters are located (from NTT press release of October 28, 2013)

At a joint press conference on September 29, NTT President Jun Sawada and NTT Docomo President Kazuhiro Yoshizawa said: “Considerations for creating a subsidiary began in April this year. Docomo will become a wholly owned subsidiary to reduce prices. However, if Docomo strengthens, there will be room for price cuts “(President Sawada),” There is no link between the case of making a subsidiary and price cuts (as requested by the administration Kan) “(President Yoshizawa). He said that he apparently emphasized that the Kan administration’s request to cut mobile rates was not the trigger.

However, according to the Nihon Keizai Shimbun (September 30), “Docomo NTT’s unwavering decision to ‘price cuts’ will be closed, and the birth of the Kan administration will be a tailwind.” There is room for a discount, “he said, and the dispute between NTT and Docomo began when pressure from the government of the telecommunications industry increased to cut prices.

“President Sawada criticized the proposal to reduce mobile charges made by President Yoshizawa and others at the time in a strong tone, saying it was insufficient. Mr. Sawada hoped that DoCoMo would have a growth strategy that is not dependent on charges. of communication, but the DoCoMo side has communication charges. I was especially careful to lock in the price. Finally, I decided to lower the price within Docomo, but President Sawada was not convinced. “

Even after that, pressure continued from then-Secretary-General Kan, who said the reduction in mobile phone rates was insufficient. NTT urged Docomo to lower prices through new technological innovations, saying that the government’s intentions cannot be ignored, but Docomo did not break from its stance of prioritizing the establishment of price cuts of up to 40% implemented in June of the year. past. ..

In May this year, President Sawada sent his sword, Motoyuki Ii, Vice President of NTT, to the Vice President of Docomo, when he could no longer feel the desire to reform from within Docomo. Mr. Ii was appointed president of Docomo in December this year in place of Mr. Yoshizawa, who retired this time, but at the May stage of this year, there was a hidden line of “making Docomo a wholly owned subsidiary. total”. Is.

The Nihon Keizai Shimbun continues.

“Until now, it was customary to buy Docomo shares when transferring from NTT to Docomo as an officer. However, Mr. Ii did not acquire Docomo shares. (As inside information) TOB (Offer to Purchase) for Docomo shares.) No further stagnation is allowed. It has been observed that the government has provoked a positive reaction to the NTT Group meeting by committing to cut prices. “

The Yomiuri Shimbun (September 30), “NTT dissatisfied with the management of docomo, ‘conservative and introspective’, continued the decline in market share,” also said the birth of the Kan administration was the deciding factor.

“As pressure from Mr. Suga increased in September, President Docomo Yoshizawa told people around him that he was reluctant to lower the price further, saying, ‘I will not change what I do. I’ll focus on business. ‘ The leadership was different from NTT’s Mr. Sawada, who values ​​the sense of distance between the government and the ruling party. “

If Docomo is not listed, no shareholder will object to the price cut.

This article from the Yomiuri Shimbun also emphasizes another goal of making it a wholly owned subsidiary.

“If we make Docomo a wholly owned and unlisted subsidiary, we will not be affected by the voices of shareholders who are dissatisfied with the price cut. Docomo’s annual dividend is approximately 390 billion yen.” Exit “to general shareholders with more than 30% of the shares. It was also intended that it would be easier to lower prices if these gains were captured by turning it into a wholly owned subsidiary.”

Asahi Shimbun (September 30) “NTT makes Docomo a wholly owned subsidiary to respond to the price reductions of mobile devices”, there is an urgent need to rebuild Docomo, whose operating income has finally become the third company largest mobile phone nationwide due to lags in technological innovation. Emphasize that.

“In the future, we will accelerate the investment focused on the high-speed mobile communication method” 5G “, which will become more competitive in the world. We will also strengthen the corporate business in collaboration with the group. To that end, NTT Communications, which handles cloud services, it will also be transferred to Docomo.
If we can reduce mobile rates by eliminating waste within the group (which we used to eat together) and achieve more efficient management, we can secure funds to offset the price reduction. Future focus is on large capacity plans. Currently, the monthly price is between 7,000 and 8,000 yen, excluding various discounts, and executives at the Ministry of the Interior and Communications believe there is a lot of room for reduction. “

Rakuten aims to announce half price with “5G” What about au and Softbank?

Will mobile phone rates go down?

Will mobile phone rates go down?

By the way, how do rivals KDDI (au) and Softbank view NTT as a wholly owned subsidiary of Docomo? On September 29, the two companies announced a common comment, saying: “The creation of a wholly-owned subsidiary must be verified from the perspective of ensuring fair competition in the telecommunications market.” It contained NTT and the government.

However, the Yomiuri Shimbun (September 30), “Big Three Companies Have an Urgent Need to Secure Mobile Rates and Resources,” states that both companies are inevitably reducing mobile phone rates.

“KDDI Chairman Makoto Takahashi said at a meeting on September 25: ‘We take the government’s request seriously. We are obliged to pay a price that is internationally comparable. ‘ Softbank also said: ‘The price cut is decisive. The voice of the “environment” (executive) is filtered. Moving forward, the focus will be on the extent of the reduction and how to squeeze the resources. Similarly, there is an urgent need to break away from the “one-legged national mobile business.”

However, there have been a number of cases of fraudulent withdrawal of deposits and savings that abused electronic payment services such as “docomo accounts”, and these movements are said to be slowing down.

Hiroshi Mikitani, Chairman and Chairman of Rakuten, cuts mobile phone rates for

Hiroshi Mikitani, Chairman and Chairman of Rakuten, Cuts Mobile Phone Rates for “5G” to Half the Price of the Top Three Companies (Photographed January 2018)

Meanwhile, Rakuten Chairman and Chairman Hiroshi Mikitani announced a reduction in cell phone charges at the time he was seeking. According to mainstream media, Rakuten will charge 2,980 yen (excluding tax) per month for unlimited data usage of mobile phone charges for the next-generation communication standard “5G” for individuals, which will begin its service on the 30th. It’s the same price as the 4G plan that started this spring, and it’s less than half the price of three big cell phone companies like NTT Docomo.

However, Rakuten’s “5G” compliant area is part of the metropolitan area, etc., and the scope is limited compared to the top three carriers, but even for Suga Yoshii management looking for a reduction in tariffs for mobile telephony, is a big restriction against the three main companies. Seems to be.

(Kazuo Fukuda)

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