Japan Communications

Basic Information

Stock Code: 9424
Industry: Information and Communications
Category Detail: Telecommunications Services
Prefecture: Tokyo
Establishment Year: May 1996
Listing Year: April 2005
Official Website: https://www.j-com.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Soracom, Adways, Meek, Ubicom, Synchro, AIR-U, Vision, NTT, KDDI, SoftBank, Okinawa Cellular Telephone, FiberGate, SoftBank Group

Overview

Japan Communications is a pioneering MVNO operator in the information and communications industry, founded in 1996, focusing on innovative service deployments utilizing low-cost line resale.

Current Situation

Japan Communications recorded consolidated sales of 4.6 billion yen in the fiscal year ended March 2022, turning its operating profit to a black ink of approximately 280 million yen. As a pioneer in the early MVNO era, it focuses on diverse SIM plans and new FinTech-related business developments. While facing intensifying competition, it stabilizes its customer base through rational plan offerings. It operates multiple brands using NTT Docomo and SoftBank lines, with mid- to long-term expectations pinned on the growth of its FinTech platform business. It is advancing technological innovations in regional currencies and electronic money sectors, with comprehensive regulatory compliance. It maintains market competitiveness through sustainable communication service provision and distinctive product pricing policies. Going forward, it will focus on stable growth and investments in new technologies.

Trivia

Interesting Facts

Established as Japan's first MVNO operator
b-mobile brand has earned long-term trust
Early entry into FinTech platforms
Reasonable Simple 290 Plan became a market topic
Electronic Signature Act certification is rare in the industry
Involved in NTTPC Communications' MVNE business
Offers diverse prepaid SIMs appealing to a wide user base
President Naohisa Fukuda is a technological innovator in the telecom industry
Provides Aeon-exclusive SIM in collaboration with Aeon Retail
Focuses on R&D of smartphone secure transaction technology

Hidden Connections

Transferred consumer MVNO business to U-NEXT while maintaining its own MVNO
Collaborated with Willcom's PHS network and operates as MVNE
Established H.I.S. Mobile as a joint venture with H.I.S.
Japan Master Trust Bank is one of its major shareholders
Former b-mobile brand specializes in prepaid SIMs
Expands electronic certificate services through my FinTech Co., Ltd.
Resells lines from multiple major telecom carriers
Adapts to long-term industry trends as an independent MVNO

Future Outlook

Growth Drivers

Expansion and commercialization progress of FinTech business
Strengthened new customer acquisition through rational plans
Expansion of corporate communication services focusing on IoT market
Stable supply system leveraging major carrier lines
Promotion of digitalization of electronic money and regional currencies
Service differentiation through strengthened security technology
Deployment and expansion of 5G-compatible services
New market entry through collaborations
Enhanced brand value through sustainability efforts
Adaptation to global communication technology trends

Strategic Goals

Achieve 50% sales ratio from FinTech business
Secure top domestic share in sub-SIM solutions
Expansion of corporate communication solutions
Establishment of low environmental impact and sustainable sales system
Improved recognition of electronic signature and digital authentication services
Market introduction of innovative communication services
Advance development for 5G/6G era
Achieve customer satisfaction over 90%
Strengthened customization to meet diverse customer needs
Creation of new digital platforms

Business Segments

Corporate Data Communication Services

Overview

Provides a variety of data communication and FinTech-related services tailored to corporate customers.

Competitiveness

Expertise and technology as Japan's first MVNO

Customers

Small and Medium Enterprises
Large Enterprises
Government Agencies
IT Companies
Financial Institutions
Educational Institutions
Telecommunications Companies
Venture Companies
Distribution Industry
Manufacturing Industry

Products

Corporate SIM Cards
Corporate Communication Plans
IoT Communication Services
Data Communication Management Services
Secure Communication Platform
Cloud Integration Services
FinTech Platform
FPoS Business
Electronic Signature Services
Sub-SIM Solutions

MVNE and Line Wholesale Business

Overview

Supports other MVNOs with line resale and service provision infrastructure.

Competitiveness

Extensive industry track record and collaboration experience

Customers

Other MVNO Operators
Telecom Agencies
Wholesalers
New Entrants

Products

Line Resale Services
Communication Platform Provision
MVNE Technical Support
Network Operation Support

FinTech Platform Business

Overview

Provides proprietary FinTech technologies supporting secure financial transactions via smartphones.

Competitiveness

High-security technology utilizing SIMs

Customers

Financial Institutions
Payment Providers
Startups
Security-Related Companies

Products

FPoS Platform
Electronic Signature and Authentication Services
ID-Free Electronic Money
Smartphone Secure Transaction App

Competitive Advantage

Strengths

Extensive know-how as Japan's first MVNO operator
Diverse SIM plans and flexible pricing
Innovative FinTech service deployments
Utilization of NTT Docomo and SoftBank line environments
Diversified services for corporate and individual customers
Reliable security technology
Technological strength from long industry experience
Ability to meet diverse customer needs
Strong partnerships with collaborating companies
Quick response to market changes

Competitive Advantages

Business model leveraging low-cost line resale
Proven provision of both prepaid and postpaid SIM cards
Differentiation through FinTech platform
Broad customer coverage with diverse communication plans
Enhanced brand recognition from pioneering status in the industry
Strong compliance and trust from electronic signature certification
Astute pricing strategy and introduction of rational plans
Rapid entry into new businesses and adaptation to technological innovations
Stable relationships with major line providers
High customization capability in corporate services

Threats

Intense competition from direct sales by major telecom carriers
Intensifying price competition in the low-cost SIM market
Investment burden accompanying rapid technological innovation
Risks from changes in legal regulations
Increasing customer demands for line quality and speed
Market fragmentation due to increasing new MVNO entrants
Expansion of competitors in FinTech field
Aging communication infrastructure and improvement costs
Increasing cyber security threats
Economic uncertainty post-COVID-19

Innovations

2022: Introduction of Reasonable Simple 290 Plan

Overview: Launched low-price 1GB plan to develop new customer segments.
Impact: Contributes to customer acquisition and revenue stabilization

2021: Obtained certification under Electronic Signature Act

Overview: my FinTech Co., Ltd. obtained certification for specific authentication services.
Impact: Improved security and reliability

2020: Development of Sub-SIM Solution

Overview: Built stable dual-SIM supply system for enterprises.
Impact: Meets corporate customer needs

2023: Increased Communication Plan Capacity

Overview: Enhanced competitiveness by increasing monthly data capacity.
Impact: Improved customer satisfaction and reduced churn rate

2024: Strengthened FinTech Platform

Overview: Advanced commercialization and feature expansion of FPoS services.
Impact: Creation of new revenue sources

Sustainability

Promotion of low-power consumption technology adoption
Support for digital inclusion in local communities
Thorough regulatory compliance
Enhanced customer protection through security improvements
Maintenance of sustainable plan pricing