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Softbank CEO Masayoshi Son Warns Operators Not To Become “Dumb Pipes”

By Dianne See Morrison - Thu 14 Feb 2008 05:37 AM PST

Softbank CEO Masayoshi Son warned operators they risked becoming “dumb pipes,” if they did not move swiftly to control mobile content, reports TotalTelecom. Speaking on Wednesday at the MWC, Son said his primary plan when Softbank bought Vodafone (NYSE: VOD) Japan in 2006 was to drive the development of the mobile web, saying voice will “eventually become a utility.”

Son said that 2008 will see network speed and device capability hitting a point that will enable the mobile web to take off. In Japan, 90 percent of all handsets shipped are mobile-TV capable, while mobile phones now have faster CPUs that speed up browsing and bigger and better quality displays that allow the web to be viewed “properly.” Son noted that 3G was actually not good enough in terms of speed, and that with it, “you just end up with people getting upset.” HSDPA, however, was fast enough.

Meanwhile, operators have to tread a fine line with content companies. He noted that when a button was put on handsets linking straight to the Softbank-owned Yahoo! (NSDQ: YHOO) Japan web portal, the operator saw a 75-fold increase in the number of users accessing the site. “Operators have to be careful not to be eaten by content companies to avoid becoming just pipes, but at the same time total integration is needed,” said Son.

Posted in: Countries, Asia, Japan, Entertainment, Mobile Video, Mobile TV, Technologies, 3G Etc, Conferences, GSMA-MWC

Tags: masayoshi son, softbank

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2 Responses:
  • From mocorocker Thu 14 Feb 2008 11:57 AM

    I think most true experts agree that carriers will indeed become dumb pipes eventually. It is a question of time and will probably take longer than expected and desired, but still inevitable.

    MR

  • From Scott Fri 15 Feb 2008 12:17 PM

    What a deluded chap...was this speech from Mobile World Congress in 1999?  Sorry Masayoshi Son the thing you fear is an inevitability.

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mocoNews.net is a news site covering the business of mobile content.

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