softbank mobile finally started offering student discount at zero yen for base charge with tiered pricing for packet usage (quite low compard with otherwise).
Quite an audacious move. They are achieving No.1 position net increase over the past 9 months in a row, ahead of docomo and au. I myself experienced the similar kind of dynamism of pricing when i was a pricing manager at one air express company in Japan. The pressure is there essentially when you already have a certain amount of revenue, just like docomo or au, accumulated over the long period of time, It’s just damn hard to compete on price, for especially the top management just can’t make a decision on revenue dilution.
It also adds a good customer segmentation scheme just by pricing.
OMG, no one seems to leave. I like the atmosphere and the view excellent from the second floor. Too bad so many college kids and the like preparing for the entrance/midterm/final or whatever exams occupy the space ; as a result, very little left for conventional guests like us. I think this particular shop should employ time-based pricing or what is known as drink bar but price by time. Obviously we pay for the space not much for coffee or latte in this setting. Pricing is that critical.
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softbank mobile recored No.1 net increase in May, originally uploaded by morikenstyle.
Update: They’ve achieved No.1 in the three consecutive months May, June, and July (the photo taken at softbank mobile store in Shibuya). The ad claiming so makes sense, given relatively low brand image held in the eyes of mobile users in Japan, relative to competitors Docomo and AU. They spend TV ad a lot too. Not surprisingly, reportedly both docomo and AU reacted with basically cutting the base charge in half for the new subscriber. I’d anticipate exactly the same pricing war softbank played and won at FTTH/ADSL penetration pricing in years 2001 and onwards.