Broadband Telephone Service: BB Phone Commences Trial Service

December 18, 2001

SOFTBANK Group (Representative: Masayoshi Son), BB Technologies Corporation (Head Office: Chuo-ku, Tokyo; President: Masayoshi Son; hereunder BB Technologies), which provides infrastructure, infrastructure management, technology development and support to the broadband service Yahoo BB, and Yahoo Japan Corporation (Head Office: Minato-ku, Tokyo; President: Masahiro Inoue), which operates Japan’s largest Internet access site Yahoo! Japan, have commenced a trial broadband telephone service “BB Phone”. BB Phone will utilize VoIP (Voice over Internet Protocol) technology and Yahoo BB’s broadband infrastructure to offer radically lower rates than ever before.

The BB Phone trial service is scheduled to be offered from the end of December, 2001 to present Yahoo! BB users nationwide and then gradually to monitors. Application for the trial service will initially be accepted via Yahoo! BB users’ members page and a survey will be conducted on the actual service’s quality, operation, maintenance and other technical aspects, as well as market needs.

After adequate verification of the trial service, a commercial service for individual users is scheduled to commence next spring. The charges for the commercial service will commence at a base fee for Yahoo! BB users of 390 yen ^*1 per month and telephone charges ^*2 of a flat 7.5 yen for a three-minute domestic call within Japan, and 7.5 yen for a three-minute call to the United States. Other international calls will be offered to 231 countries at minimum charges and calls between Yahoo! BB users will be free. Both domestic and international charges will be set at unprecedented low levels.

Present Yahoo! BB users need only install a dedicated terminal adaptor (TA) ^*3 (monthly rental 140 yen) with no need to change telephone number, dialing method or telephone receiver.

Thanks to Yahoo! BB’s powerful already installed nationwide gigabyte network and Managed QoS (Quality of Service), the new service is expected to offer high quality transmission.

Currently BB Technologies has a high-speed network connecting 1,143 NTT stations around Japan and provides infrastructure and technology development for Yahoo! BB. BB Phone will keep capital investment to a minimum by making maximum use of Yahoo! BB’s powerful broadband infrastructure developed by BB Technologies. SOFTBANK Group will offer BB Phone as a high quality service at unprecedented low rates for telephone calls and will access the resources of the entire group to expand this new business. Through BB Phone we are hoping to make a social contribution by vitalizing long-distance communications within Japan and internationally.

*1 A separate initial registration fee of 3,980 yen will be charged.
*2 Three digit emergency numbers such as 110, and 119, mobile phone numbers 090, 070, etc., PHS numbers, and other 0A0,0120 and 0990 numbers will not be offered in the new service and will be charged at the rates set by the contracted telephone company.
*3 The purchase price of the TA adaptor is 6,720 yen.
* All rates indicated are without tax.

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