The No.1 Broadband IP-Phone Service

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1 The No.1 Broadband IP-Phone Service Feb Sadahiro Sato BB Phone Service Division Softbank BB Corporation 1

2 Network Comparison Traditional Telephone Internet Phone Internet PSTN 2 All Rights Reserved, Copyright 2003,Softbank BB Corp.

3 Position of BB Phone VoIP IP Network Access Lines DF / ADSL 3

4 Key Advantages of BB Phone Aggressive Pricing Comparable Quality to PSTN Easy Set-up, Easy Operation 4

5 Service Overview BB Phone offers very competitive pricing. (see the next slide). Owing to SBB s Softswitch and IP Backbone technology, BB Phone is the first nation-wide IP based voice service that achieves comparable quality to the PSTN. BB Phone is NOT a Voice over the internet service. Rather, it is an enhanced voice service delivered over SBB s IP-Based Broadband network. Customers require no additional expense or behavior changes on the part of them. BB Phone has Automatic Re-Routing Function to PSTN in the event of our network outage or CPE (Customers Premise Equipment) failure. 5

6 Pricing 1 Dometstic Fixed Line (JPY/3Mins) L.D. \20.0 Local \8.5 Off-net On-net 0 \7.5 0 Yen!

7 Pricing 2 BB Phone NTT On-net Call Free of Charge 8.5~ ~ 20 (3Mins) Off-net Call 7.5 (3Min) 8.5~ ~ 20 (3Mins) Cellular 25/Min (8:00-23:00) 20/Min (23:00-8:00) 30~ ~ 40/Min International (USA) 2.5/Min 40~ ~ 60/Min by KDDI We terminate more than 223 international destinations besides USA. 7

8 BB Phone Network Deployment By utilizing nationwide IP network of Yahoo BB, We provide high quality IP telephone service VoIP GW miyagi sapporo 51 Gateways installed nationwide and interconnected with PSTN fukuoka hiroshima saitama nagoya kanagawa tokyo sendai chiba A fully redundant system to reach high reliability osaka kyoto Well-Maintained Voice Quality by controlling QoS on voice packets 8

9 Synergy Effect with Japan Telecom Promote network efficiency 札 幌 北 見 函 館 室 蘭 千 歳 釧 路 SOFTBANK BB s backbone 青 森 秋 田 八 戸 盛 岡 山 形 仙 台 福 岡 広 島 松 江 岡 山 鳥 取 吹 田 金 沢 京 都 上 越 さいたま 前 橋 甲 府 長 岡 栃 木 福 島 水 戸 船 橋 佐 賀 佐 世 保 長 崎 熊 本 松 山 大 分 高 知 宮 崎 香 川 徳 島 大 阪 奈 良 和 歌 山 志 摩 小 牧 沼 津 東 京 鹿 児 島 沖 縄 沖 縄 那 覇 9

10 Synergy Effect with Japan Telecom Promote network efficiency 札 幌 北 見 函 館 室 蘭 千 歳 釧 路 JAPAN TELECOM s backbone 青 森 秋 田 八 戸 盛 岡 仙 台 福 岡 佐 賀 佐 世 保 長 崎 熊 本 松 江 鳥 取 金 沢 広 島 岡 山 京 都 吹 田 小 牧 松 山 大 阪 香 川 奈 良 大 分 徳 島 和 歌 山 志 摩 高 知 上 越 さいたま 前 橋 甲 府 沼 津 長 岡 栃 木 東 京 福 島 水 戸 船 橋 宮 崎 鹿 児 島 沖 縄 沖 縄 那 覇 10

11 Synergy Effect with Japan Telecom Promote network efficiency 札 幌 北 見 函 館 室 蘭 千 歳 釧 路 Integration of backbones 青 森 秋 田 八 戸 盛 岡 山 形 仙 台 福 岡 佐 賀 佐 世 保 長 崎 熊 本 松 江 鳥 取 金 沢 広 島 岡 山 京 都 吹 田 小 牧 松 山 大 阪 香 川 奈 良 大 分 徳 島 和 歌 山 志 摩 高 知 上 越 さいたま 前 橋 甲 府 沼 津 長 岡 栃 木 東 京 福 島 水 戸 船 橋 宮 崎 鹿 児 島 沖 縄 沖 縄 那 覇 11

12 Technical Overview BB Phone takes the call traffic that our subscribers hand off to SBB via Residential Gateway (RGW), converts it to IP Packets and delivers the traffic over BB Phone s IP-Based network to any domestic/int l location. Protocols: MGCP for NNI interconnections / On-net H.323 for UNI interconnections SIP Signaling: SS-7 for interconnection with NTT/ILECs PRI for CLECs and International Carriers Codec: G.711 (64k bps) 12

13 On-net Connection Call Agent 0 / Min TA GW GW TA TGW SGW Int l Carriers NW SS-7 TGW Domestic PSTN Non- BB phone Subscribers Mobile Network Cellular Int l Destinations 13 All Rights Reserved, Copyright 2003,Softbank BB Corp.

14 Off-net Termination Call Agent TA GW GW TA TGW TGW SGW Int l Carriers NW SS / 3Min Domestic PSTN Non- BB phone Subscribers Mobile Network Cellular Int l Destinations 14 All Rights Reserved, Copyright 2003,Softbank BB Corp.

15 International Termination Call Agent TA GW GW TA TGW SGW Int l Carriers NW 2.5 / Min SS-7 TGW Domestic PSTN Non- BB phone Subscribers Mobile Network Cellular Int l Destinations 15 All Rights Reserved, Copyright 2003,Softbank BB Corp.

16 Mobile Termination Call Agent TA GW GW TA TGW SGW Int l Carriers NW SS-7 TGW Domestic PSTN Non- BB phone Subscribers Mobile Network Int l Destinations 20 / Min(23:00-8:00) 25 / Min(8:00-23:00) Cellular 16 All Rights Reserved, Copyright 2003,Softbank BB Corp.

17 Automatic Re-Routing Call Agent 0 / Min TA GW GW TA PSTN or 3 rd party s NW And # Emergency Call # Tall Free Call # Other Special Number Destination Desitination 17

18 Number of BB Phone Subscribers <Million People> % Active User ratio Commercial Service Start from BB Phone Others 70% April 25 th, months later Million 02/ 4 02/ 02/ / 7 02/ 8 02/ 02/ / 11 02/ 03/ / 2 03/ 3 03/ 03/ / 6 03/ 7 03/ 03/ / 10 03/ 03/ / 1 04/ 02 04/ 04/ / 5 04/ 04/ / 08 04/ 9 04/ 04/ Subscribers BB Phone

19 Acquisition Strategy 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 Total number of our ADSL customers BB Phone Subscribers ADSL customers w/o BB Phone 0 '02/04 '02/07 '02/10 '03/01 '03/04 '03/07 '03/10 '04/01 '04/04 '04/07 '04/10 BB Phone is the standard service bundled with Yahoo!BB ADSL. No additional / monthly fee for BB Phone will be charged to our ADSL customers %

20 Q&A 20

21 Thank You! Sadahiro Sato BB Phone Service Div., Soft Bank BB Corporation 21 All Rights Reserved, Copyright 2003,Softbank BB Corp.

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