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January 20, 2020: Enterprise mobile business strategy presentation for institutional investors

Question: Please explain IIJ's competitive advantages when it comes to enterprise mobile.
Answer: Ever since we have become MVNO in 2008, we have been offering various enterprise mobile solution. IoT transactions/projects require not only mobile connectivity services but also cloud services to store collected data, network services to connect branches and sites, security services, construct network systems and other various functions. Rather than focusing on particular IoT area, we have been executing PoCs on various IoT areas by leveraging our competitive advantage of being able to offer comprehensive solution with these various network services and SI expertise along with full-MVNO services.
Question: What are ChipSIM and SoftSIM which are made possible with full-MVNO functions?
Answer: ChipSIM: Instead of regular plastic SIM, by inserting IC chip type SIM into IoT devices at manufacturing stage, resistance for temperature, vibration and corrosion are enhanced. SoftSIM: Instead of physical SIM, by installing software that has SIM function into various things, we envision society to be more interconnected through network .
Question: What are your thoughts on others becoming full-MVNOs?
Answer: We are aware of some news outlet that there are companies becoming full-MVNO. By having more players, we expect the market to be more energized and it should lead to technological advancement. Needless to say, there shall be competition, yet we should continue to differentiate ourselves with service development capability and customer base. As for cost, we can expect cost reduction as the network modification cost (monthly cost) which is currently paid by us can be shared with them.
Question: Please tell us about 5G services by MNOs as well as 5G services by MVNOs.
Answer: Generally speaking, 5G infrastructure, which uses public radio waves, is expected to be opened to MVNO soon by the Ministry of Internal Affairs and Communications and etc. and we are excited about new market opportunity.
Question: Do you have to make large-scale investment for Grape One Co., Ltd., local 5G service platform company set up by IIJ, SUMITOMO CORPORTATION and cable TV operators, to advance and expand?
Answer: We do not expect any large-scale investment as we are to provide our current full-MVNO functions to Grape One. Please refer to the following press release Pursuing the Wireless Platform Business Using Local 5GPDF
Question:Rakuten Mobile Inc., is becoming MNO - please give us your comment on consumer mobile market competitive landscape
Answer: We refrain from making comments about individual player as its pricing and service launch have not started. Our mobile business model is to gather various traffic to improve mobile network utilization. in particular, we believe our enterprise mobile solution such as IoT are our strengths. As for consumers, in addition to direct sales, we shall continue to expand through MVNE busienss, providing MVNO infrastructures to other MVNOs.

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