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

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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.

Feb 14, 2008 7:37 AM ET

Posted In: Entertainment, Media & Publishing, TV, Social Media, Video, Technologies / Formats, 3G, Countries, Asia, masayoshi son, softbank

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