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Profile: Internet Initiative Japan Inc (IIJI.O)

IIJI.O on Nasdaq

16 Mar 2018
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$0.11 (+1.06%)
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Internet Initiative Japan Inc. (IIJ), incorporated on December 3, 1992, is an Internet service provider (ISP) in Japan that offers Internet connectivity services for both enterprises and consumers. The Company provides Internet connectivity services, wide area network (WAN) services, outsourcing services, systems integration and equipment sales as total network solutions to Japanese corporate clients and governmental organizations. The Company operates through two segments: a network services and systems integration business segment and an ATM operation business segment. The network services and systems integration business segment consist of its Internet connectivity services for enterprise and consumers, WAN services, outsourcing services, systems integration and equipment sales.

The Company's Internet connectivity services include Internet Protocol (IP) services with bandwidth ranging from 64 kilobits per second (kbps) to over 10 Gigabits per second (Gbps), low-cost broadband services, such as optical and/or Asymmetric Digital Subscriber Line (ADSL) lines, which are mainly used to connect branch offices, and mobile data communications services for enterprise and consumers. Its WAN services provide closed-network services, mainly operated by IIJ-Global. The Company's outsourcing services include security-related outsourcing services that protect its customer network systems from unauthorized access and secure remote connections to internal networks, network-related outsourcing services, such as router rental and Virtual Private Network (VPN), server-related outsourcing services, such as Web server hosting and e-mail security service, data center-related outsourcing services and its cloud computing service IIJ GIO/Hosting Package. The Company's systems integration includes systems construction and systems operation and maintenance. Systems construction is tailored to meet each of its customers' requirements, which include consulting, project planning, systems design and development of network systems, and sales of equipment and software purchased from third parties. Systems operation and maintenance include system related maintenance, monitoring and other operating services and cloud computing services, such as IIJ GIO/Component. The Company had eight overseas subsidiaries in the United States, the United Kingdom, Germany, China, Singapore, Hong Kong, Thailand and Indonesia as of June 27, 2016.

Internet Connectivity Services

The Company offers two categories of Internet connectivity services: Internet connectivity services for enterprise and Internet connectivity services for consumers. Internet connectivity services for enterprise are based on dedicated local-line connections and high-speed wireless data connections provided by telecommunications carriers between its backbone and customers. Internet connectivity services for consumers require customers to connect to its points of presence (POPs) through the publicly switched telephone network or a range of broadband access services, such as ADSL and optical lines, as well as wireless mobile data communications. Its lineup of Internet connectivity services for enterprise includes IP service, IIJ data center connectivity service, IIJ FiberAccess/F and IIJ DSL/F (broadband services), dial-up services and IIJ mobile service.

The Company offers Internet connectivity services for consumers under the brand names IIJ4U, IIJmio and hi-ho. It also offers original equipment manufacturer (OEM) services for other network operators. The Company offers WAN services, a closed network service using dedicated lines, wide-area Ethernet services and IP- virtual private network (VPN) services to corporate customers. WAN services offer connections that allow its customers to control the traffic over the wide-area networks. It provides its customers with a range of outsourcing services, such as security-related, network-related, server-related, data center-related and IIJ GIO/Hosting Package, a line-up of services for an all-in-one non-customizable hosting package cloud computing service.

The Company offers services that protect customers' internal network systems from unauthorized, illegal access, such as firewall services and security scan services. It also provides secure remote connections to the internal networks. It offers various types of Internet-VPN services and router rental services, such as IIJ Internet- local area network (LAN) Service, IIJ SMFsx Service and IIJ Managed VPN PRO Service. It offers a range of server-related outsourcing services, such as Web hosting, e-mail hosting, document storage and streaming services. It offers IIJ data center facility services and management and monitoring services. It also offers basic monitoring and maintenance services for the equipment. It offers management and monitoring services. In addition, it offers customer support and help desk solutions, an IP Phone service and other services tailored to its customers' requirements.

Systems Integration

The Company's systems integration consists of systems construction and systems operation and maintenance. Systems construction includes consulting, project planning, systems design and development of network systems. Its systems construction focuses on Internet business systems, and Intranet and Extranet corporate information systems. In the consulting and planning phase of a systems construction project, the Company forms special project management teams for the project. In the phase of systems design and development of network systems, the Company procures equipment, such as servers or use IIJ GIO/Component services as a component of the system and manages application development and software programming tasks, which are, depending on the size of the project, outsourced to third parties. Systems construction is generally provided together with its network services. In the operation and maintenance phase, by utilizing data center facilities and IIJ GIO/Component services directly linked to its network, the Company provides a range of operation and maintenance services. The Company develops, provides and invests in a cloud-based foreign exchange (FX) platform, which it provides to financial institutions, such as securities brokers and FX trading companies. In addition to the network services and systems integration, the Company sells third-party equipment, such as routers, iPads and other equipment with its in-house developed router, the SEIL Series.

ATM Operation Business

The Company's ATM operation business is conducted by its subsidiary, Trust Networks Inc. (Trust Networks), which operates automated teller machines (ATMs) and its network systems, and receives a commission for each bank withdrawal transaction when a customer uses its serviced ATMs. As of March 31, 2016, 1,087 ATMs were in operation in various places, such as Japanese pachinko parlors. The primary components of its network include its backbone, which leased lines and network equipment, such as routers; POPs in metropolitan areas in Japan; Internet data centers, and a network operations center (NOC).

POPs are the main points, at which its customers connect to its backbone. It provides Internet connectivity from its POPs to commercial and residential customers through leased lines and dial-up connections over local exchange facilities. As of June 27, 2016, it operates 30 primary POPs for dedicated access and a universal POP for nationwide dial-up access in Japan. As of June 27, 2016, the Company operated 26 Internet data centers, 20 in Japan and six abroad; seven in Tokyo, three in Osaka, two each in Yokohama and Nagoya, and one each in Saitama, Sapporo, Sendai, Kyoto, Fukuoka, Matsue, New York, San Jose, Los Angeles, London, Shanghai and Singapore. From its NOC, it monitors the status of its network, the traffic on the network, the network equipment and components, and various other aspects of its network, including its customers' access lines leased from carriers.

The Company competes with NTT Communications Corporation, KDDI Corporation, NEC Corporation, Fujitsu Limited, NTT Data Corporation, Nippon Telegraph and Telephone Corporation, Amazon.com, Inc. and Microsoft Corporation.

Company Address

Internet Initiative Japan Inc

Iidabashi Grand Bloom, 2-10-2, F
CHIYODA-KU   TKY   102-0071
P: +813.52056500
F: +813.52056441

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