Softbank mobile services, victim of its success

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Softbank, the third Japanese major mobile carrier, experienced a tough weekend. All started after the company slashed its subscription prices. Results: Plenty of new customers lured by lower-costs and phone number portability — and flooded its system, forcing the operator to suspend new subscriptions.

The new fee system features free calls and instant messages between subscribers, and a drop of basic monthly fees, in some cases by 70 percent. Plus additional 3G services brought by its partnership with Yahoo.

Of course, this downtime would yield in just a small grinch for Softbank. But just like Skype and its new free SkypeOut program in the UK, aggressive marketing always needs a better, more careful preparation.

Oct 30, 2006 | By Nuno

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