Forval Telecom

Basic Information

Stock Code
9445
Industry
Information and Communications
Category Detail
Telecommunications Services
Prefecture
Tokyo
Establishment Year
April 1995
Listing Year
November 2000
Official Website
https://www.forvaltel.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Internet Initiative, Asahi Net, FreeBit, Broad Enterprise, Toname, Forval, Forval R, GMO Internet Group, Wattman

Overview

Forval Telecom, founded in 1995, is a specialist in the information and communications industry, primarily targeting small and medium-sized enterprises (SMEs) by providing IP telephony and communication services to deliver affordable telecommunications.

Current Situation

Forval Telecom recorded consolidated sales of approximately 24.7 billion yen in the fiscal year ended March 2023, maintaining stable performance. Its core business is corporate communication services based on IP telephony, demonstrating competitiveness through low-cost and convenient services tailored to the SME market. As a reseller of communication lines, it adds unique service features to meet diverse customer needs and supports business efficiency with services like one-bill billing. Additionally, since 2018, it has diversified into retail electricity services for corporations alongside its communications business. Moving forward, it will focus on subsidiary reorganization and service expansion, aiming to enhance added value through IT innovation and contribute to local communities. It plans to continue investing in technological innovation and pursue growth strategies, targeting further market share expansion and strengthening of its revenue base in the industry.

Trivia

Interesting Facts

  • Specialized in communication services for SMEs since its founding in 1995
  • Expanded from sales of telephones and OA equipment to telecommunications business
  • Contributes to customer business efficiency with proprietary one-bill service
  • Diversified into retail electricity business since 2018
  • Parent company Forval holds over 75% of shares as of 2023
  • Listed company in the information and communications industry headquartered in Konan, Minato-ku, Tokyo
  • Generates synergy effects through collaboration between communications and electricity businesses
  • Maintains differentiation through proprietary added-value services
  • Operates a resale model procuring lines from telecommunications carriers
  • Company name derives from 'Forval Telecom'
  • Has subsidiaries in communication-related and consulting businesses
  • Listed on TSE Mothers market around its 2000 launch
  • Also engages in printing and financial advisory under corporate specialized services
  • Improving recognition in SME market through enhanced customer response
  • Comprehensive provision of diverse communication services including domestic and international calls

Hidden Connections

  • Secures stable business foundation through operational collaboration with parent Forval
  • Expanding business domains beyond communications through retail electricity entry
  • Specializes in resale model without owning proprietary lines as a telecommunications carrier
  • Composite business combining communication services and related equipment sales
  • Leverages accessible central Tokyo location with headquarters in Minato-ku
  • Achieves efficient management with a small team of 309 employees
  • Develops systems for prompt response to legal amendments like invoice system
  • Addresses wide range of corporate needs through subsidiaries' insurance-related businesses

Future Outlook

Growth Drivers

  • Increasing demand for IT and communications strengthening among SMEs
  • Expanding demand for integrated corporate services (communications + electricity)
  • Increase in contracts due to digital transformation initiatives
  • Linkage with strengthened government support for SMEs
  • Development of cloud telephony and mobile integration technologies
  • Growing attention to energy-saving and environmentally considerate services
  • New service development in response to legal amendments
  • Cost reduction and service sophistication through new technologies
  • Expansion of solution scope through collaboration with related subsidiaries
  • Strengthening differentiation from competitors in the market

Strategic Goals

  • Rise to top 3 in corporate IP telephony market share
  • Realize seamless integration of communications and electricity services
  • Expansion of DX-compatible IT solution business
  • Promotion of efficiency through active subsidiary management
  • Contribution to sustainable energy supply
  • Significant expansion and deepening of SME customer base
  • Service innovation through utilization of emerging technologies
  • Secure trust through strengthened cyber security
  • Improvement of industry recognition for environmental and social contributions
  • Achieve further revenue diversification from 2025 onward

Business Segments

Communication Services for SMEs

Overview
Provides communication services and added value functions centered on SMEs to support business efficiency.
Competitiveness
Specialized services and one-bill billing function enhance customer convenience
Customers
  • SMEs
  • Small businesses
  • IT companies
  • Internet cafes
  • Medical institutions
Products
  • IP Telephony Services
  • Corporate Internet Connections
  • One-bill Billing Service
  • Network Equipment Sales

Retail Electricity Business

Overview
Provides electricity supply and energy management services to corporate customers.
Competitiveness
Composite service deployment through collaboration with communications business
Customers
  • Small and medium-sized businesses
  • Retail stores
  • Offices
  • Shops
Products
  • Electricity Sales
  • Electricity Cost Management
  • Renewable Energy Supply

Security Certification Consulting

Overview
Provides consulting services for obtaining security certifications.
Competitiveness
Support system by experienced expert team
Customers
  • SMEs
  • System companies
  • Various organizations
Products
  • Privacy Mark Acquisition Support
  • Information Security Measures

Communication Equipment Sales and Maintenance

Overview
Handles sales and after-sales service of communication equipment and terminals.
Competitiveness
Abundant equipment lineup and prompt response
Customers
  • Corporate customers
  • Communication agents
Products
  • IP Phone Terminals
  • Routers
  • Related Communication Equipment

Information and Communications Solution Provision

Overview
Supports construction of information and communications infrastructure tailored to customer needs.
Competitiveness
Flexible customization capabilities
Customers
  • Companies
  • Organizations
  • Local governments
Products
  • VoIP Solutions
  • Network Design
  • Maintenance and Management Services

Cost Management and Billing Agency Services

Overview
Streamlines accounting operations through integrated management of communication and electricity costs.
Competitiveness
Compatible with various pricing systems
Customers
  • SMEs
  • Corporate customers
Products
  • One-bill Service
  • Invoice Digitization Solutions

Competitive Advantage

Strengths

  • Service design specialized for SMEs
  • Proprietary one-bill billing system
  • Abundant track record in corporate IP telephony
  • Competitiveness from combined communications and electricity offerings
  • Strong network with partners
  • Prompt customer support system
  • Long-term trust building with corporate customers
  • Risk diversification through diversified business
  • Sustainable electricity service deployment

Competitive Advantages

  • High price competitiveness as a line reseller
  • Offers unique services such as phone number portability
  • Unique business model combining communications and electricity services
  • Comprehensive support for SMEs improves customer satisfaction
  • Comprehensive solutions possible through collaboration with related subsidiaries
  • Trust from long-term communications service expertise
  • Efficient billing management system reduces customer operational burden
  • Strength in corporate IP telephony services compatible with optical lines
  • Accumulated experience from early entry into retail electricity

Threats

  • Intensified competition from major telecoms' pricing offensives
  • Delays in responding to rapid technological changes in market needs
  • Risks from regulatory and policy changes in the electricity market
  • Decline in SME communication demand due to economic downturn
  • Customer loss to emerging cloud communication services
  • Infrastructure risks from natural disasters
  • Sophistication of cyber security threats
  • Management instability from difficulties in securing talent

Innovations

2023: Release of Invoice System-Compatible Web Invoice Issuance System 'Super Easy Invoice'

Overview
Developed and launched a web invoice issuance system in response to new legal requirements.
Impact
Improves customer billing efficiency and reliability

2021: Launch of iSmart Hikari Exclusive Corporate IP Telephony Service 'CooVo'

Overview
Launched dedicated IP telephony service optimized for high-speed optical lines.
Impact
Contributes to improved communication quality and customer base expansion for corporate clients

2020: Enhancement of Integrated Billing 'One-bill' Service for Communication

Overview
Enriched functions to enable consolidated billing for phone, internet, and electricity.
Impact
Reduces customer accounting burden and improves service retention rate

Sustainability

  • Promoting dissemination of renewable energy through corporate electricity services
  • Promoting energy efficiency in communication equipment
  • Contributing to indirect CO2 reduction through business efficiency
  • Enhancing information security to protect customer assets
  • Promoting provision of communication infrastructure to local communities