Softbank told to improve mobile-network management

Wed May 14, 2008 1:44am EDT
 
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TOKYO, May 14 (Reuters) - Japan's telecommunications ministry said on Wednesday it had ordered Softbank Corp (9984.T) to improve the management of its mobile phone networks after glitches caused service suspensions three times in one month.

The ministry asked Softbank, the country's third-biggest mobile carrier after NTT DoCoMo (9437.T) and KDDI Corp (9433.T), to outline measures to prevent such problems and inspect its back-up equipment. Some Softbank services were halted on April 9, May 5 and May 6, affecting a combined 1.6 million subscribers.

Softbank has been outpacing its rivals in user signups with the help of its aggressive marketing and low-cost strategy, but it has experienced occasional problems as it tries to expand its networks rapidly.

The company shares were down 1.7 percent at 2,005 yen as of 0541 GMT, against a 1.1 percent rise in the benchmark Nikkei average .N225. (Reporting by Sachi Izumi; Editing by Hugh Lawson)

 
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