FreeBit

Basic Information

Stock Code
3843
Industry
Information and Communications
Category Detail
Telecommunications Services
Prefecture
Tokyo
Establishment Year
May 2000
Listing Year
March 2007
Official Website
https://freebit.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Toel, J.S.B., Internet Initiative, Systemdi, Daiwa Computer, Asahi Net, NeoJapan, SCAT, ORO, Yukes, System Support Holdings, Broad Enterprise, Toumei, Kyowa Industrial, Forval Telecom, GMO Internet Group

Overview

FreeBit is a growing information and communications company founded in 2000, headquartered in Shibuya-ku, Tokyo, offering communication services, online advertising, and cloud services.

Current Situation

FreeBit achieved consolidated sales of approximately ¥38.6 billion in FY2021, with operating profit showing steady progress. It primarily focuses on outsourcing operations for internet connection services and developing cutting-edge technologies. The ISP business is operated in collaboration with subsidiaries such as Dream Train Internet, providing services to a wide customer base. Remarkable growth is also seen in advertising, online marketing support, and cloud services, advancing diversified business development. In recent years, it has responded to rising market needs for IoT and cloud usage by enhancing service quality and promoting technological innovation. Additionally, strong ties with major shareholders have stabilized its financial base. In the medium to long term, it aims to expand revenue by leveraging digital society growth drivers, efficient communication infrastructure, and new service development. Corporate governance ensures transparency as a company with a board of auditors, committed to sustainable management.

Trivia

Interesting Facts

  • Achieved rapid growth since TSE Mothers listing in 2007.
  • freebit mobile offers basic fee-free mobile services.
  • Acquired Dream Train Internet as subsidiary to expand ISP business.
  • Has history of capital and business alliance with Culture Convenience Club.
  • Actively expanding into advertising and cloud sectors for diversified management.
  • Representative director doubling as technical CEO leads technological innovation.
  • Head office located in E-Space Tower, Maruyama-cho, Shibuya-ku, Tokyo.
  • Consolidated sales approx. ¥38.6 billion, approx. 900 employees.
  • Industry-leading presence in ISP operation outsourcing technology.
  • Transitioned to Tokyo Stock Exchange Prime Market in 2022.

Hidden Connections

  • Strengthened industry ties through ISP business transfer from Livedoor.
  • Business alliance with parent Alps Alpine leads to product development.
  • Evolved to business collaboration after investment ties with Culture Convenience Club.
  • Realized integrated communication and device provision through user smartphone services.
  • Significantly strengthened ad technology by absorbing subsidiary Full Speed.
  • Expanded ISP business through group growth with Dream Train Internet.
  • Exploring new service creation through fusion of cloud and advertising businesses.
  • Considering expansion of ISP operation outsourcing know-how to overseas telecom operators.

Future Outlook

Growth Drivers

  • Expansion of 5G and IoT-compatible communication services.
  • Increasing corporate demand for cloud services.
  • Growth in digital marketing market.
  • Development of smart device integration services.
  • Operational efficiency improvements through technological innovation and AI adoption.

Strategic Goals

  • Expand communication services sales and strengthen customer base.
  • Establish top-class domestic position in cloud business.
  • Achieve advanced automation of services using AI.
  • Promote sustainable management to reduce environmental impact.
  • Promote revenue diversification through new business development.

Business Segments

Internet Connection and Operation Outsourcing Services

Overview
Provides operational support and technical assistance for corporate internet connection services.
Competitiveness
Abundant operational expertise and highly reliable service deployment
Customers
  • Small and medium enterprises
  • Large enterprises
  • Hosting providers
  • IT vendors
  • Local governments
  • Educational institutions
Products
  • ISP Operation Outsourcing
  • Network Construction Support
  • Connection Monitoring Service
  • Traffic Analysis

Online Advertising and Marketing Support

Overview
Supports online advertising from planning to operations and performance analysis.
Competitiveness
Utilization of latest ad tech and effective marketing expertise
Customers
  • Advertising agencies
  • E-commerce operators
  • Small and medium enterprises
  • Large enterprises
  • Media operators
Products
  • SEO Services
  • Listing Ads
  • Ad Technology
  • SNS Marketing

Cloud and Data Center Services

Overview
Provides stable cloud infrastructure and maintenance services for enterprises.
Competitiveness
Scalable and secure data center operations
Customers
  • IT companies
  • Software development companies
  • Online service operators
  • Small and medium enterprises
  • Educational institutions
Products
  • Server Hosting
  • Cloud Infrastructure Construction
  • IT Infrastructure Maintenance
  • Data Backup

Smart Device Business

Overview
Provides proprietary brand smartphones and related services.
Competitiveness
Low-price mobile plans with basic fee-free option
Customers
  • General consumers
  • Telecom carriers
  • Retail stores
  • MVNO operators
Products
  • Android Smartphones
  • Communication Service Plans
  • Device Support Services

Technology Development and Research Support Services

Overview
Conducts technology R&D and consulting in the communications field.
Competitiveness
Rich technical assets and expertise accumulated since founding
Customers
  • Telecom carriers
  • Tech ventures
  • Universities and research institutions
  • Large enterprise R&D departments
Products
  • Communication Technology Development
  • IoT Platform Development
  • Advanced Network Technology

Media Content Delivery Services

Overview
Deploys digital media delivery support and ad technology services.
Competitiveness
High-performance delivery technology and analytics capabilities
Customers
  • Advertisers
  • Video streaming operators
  • Online media operators
  • Marketing companies
Products
  • Content Hosting
  • Ad Delivery Technology
  • Analytics Tool Provision

E-commerce Support Services

Overview
Provides total support for EC business launch and operations.
Competitiveness
Customizability to accommodate diverse industries
Customers
  • E-commerce operators
  • Retail businesses
  • Logistics companies
Products
  • EC Platform Provision
  • Payment System Construction
  • Logistics Integration Solutions

Cloud Solution Construction Support

Overview
Comprehensive support for corporate cloud adoption and security measures.
Competitiveness
Technical expertise and flexible implementation support
Customers
  • Corporate IT departments
  • IT managers
  • System integrators
Products
  • Cloud Migration Support
  • Security Enhancement Services
  • System Monitoring

Network Consulting

Overview
Specialized consulting for optimizing customer communication networks.
Competitiveness
Specialized knowledge and extensive track record
Customers
  • Large enterprises
  • Public institutions
  • Educational institutions
Products
  • Network Design
  • Operations Improvement Proposals
  • Troubleshooting Support

Digital Marketing Analytics Services

Overview
Provides data analytics services for effective ad operations.
Competitiveness
High-precision analytics technology based on expertise
Customers
  • Advertisers
  • Marketing companies
  • EC site operators
Products
  • Data Analytics Tools
  • Ad Performance Measurement
  • Customer Behavior Analysis

IoT Platform Provision

Overview
Builds and supports IoT service platforms.
Competitiveness
Integration of communication technology and data utilization
Customers
  • Manufacturing
  • Smart city operators
  • Retail
Products
  • IoT Connection Services
  • Device Management
  • Data Collection and Analysis

Customer Support Outsourcing

Overview
Provides customer support outsourcing services.
Competitiveness
High-quality customer service by specialized staff
Customers
  • Telecom companies
  • IT service providers
  • Product manufacturers
Products
  • Phone and Email Support
  • Troubleshooting
  • Customer Data Management

Competitive Advantage

Strengths

  • Abundant ISP operation experience
  • Versatile business development capabilities
  • Active investment in technological innovation
  • Strong financial base
  • Online advertising support technology
  • Nationwide network infrastructure
  • Cloud infrastructure operations expertise
  • High customer support quality
  • Comprehensive service lineup
  • Business expansion through collaborations

Competitive Advantages

  • High reliability and track record in operation outsourcing services
  • Diverse communication infrastructure technologies
  • Ad tech utilization in online advertising
  • Stable operation and advanced management of cloud services
  • Synergy creation through parent-subsidiary collaborations
  • New market development via low-cost mobile services
  • Rapid technology development responsiveness
  • Service composition accommodating wide customer segments
  • Quick adaptation to market changes
  • Robust audit system and corporate governance practices

Threats

  • Intensifying price competition in telecom business
  • Strengthened regulations on internet services
  • Market pressure from new entrants
  • Increasing cyber security threats
  • Risk of failing to keep pace with technological innovation speed
  • Risk of performance deterioration in key customers
  • Risk of contract changes or reductions from corporate customers
  • Infrastructure damage from natural disasters
  • Strengthened data privacy regulations
  • Aging communication infrastructure and rising update costs

Innovations

2022: Full Speed Made Wholly Owned Subsidiary

Overview
Made Full Speed a wholly owned subsidiary to strengthen online advertising business.
Impact
Enhanced synergy in advertising support services

2021: Advancing Development of IoT Communication Technologies

Overview
Accelerated R&D of communication technologies and services targeting the IoT market.
Impact
Established foundation for new market development

2020: Smartphone PandA Released

Overview
Launched low-price smart devices and basic fee-free plans.
Impact
Successfully expanded usage among younger demographics

2023: Cloud Service Functionality Enhanced

Overview
Expanded next-generation cloud features and achieved higher reliability.
Impact
Expanded utilization by corporate customers

2024: AI-Powered Network Management System Developed

Overview
Improved network monitoring and fault detection using AI.
Impact
30% improvement in operational efficiency

Sustainability

  • Started operations of energy-efficient data centers
  • Promoting equipment updates to reduce environmental impact
  • Introduced recyclable communication equipment
  • Reduced CO2 emissions through telework promotion
  • Participating in environmental conservation activities with local communities