HIKARI TSUSHIN, INC. SHOP Business

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As a primary sales agent of mobile phones, we operate 1,722 shops nationwide (as of March 2010).
Competition among carriers has intensified since the introduction of the mobile phone number portability system in October 2006.
We responded to market changes and offered services to customers nationwide as the No.1 independent mobile phone sales agency.

Strengths and Future of our Agency SHOP Business -- Responding to Diverse User Needs

The ability to adapt and rapidly respond to the ever-changing mobile phone market
Broad sales networks covering all of Japan
Improving the productivity of existing outlets

Sales Channels

Directly Managed Shops

As a sales agent, we purchase products from telecommunications carriers and sell them to our customers. Company shops are being managed and supervised under the business policies of Hikari Tsushin.

Profit Model: Directly Managed Shops
The profit model consists of a lump-sum commission paid at the time of sales. It is received as a commission from contracts for new subscriptions/model changes from models of other carriers using the number portability system.Also,stock commissionpaid by the carriers is calculated based on the monthly basic and usage fees paid by the users (we have acquired) over a specified period (about 5 years).

Secondary Agents

We also sell mobile phones purchased on a wholesale basis from carriers to secondary agents who then sell to end-consumers.
While each secondary agent manages their business on its own, financial assistance is provided by us when they start their shops.

Profit Ｍodel: Secondary Agents
The profit model consists of a lump-sum commission paid at the time of sales. It is received as a commission from contracts for new subscriptions/model changes from other carriers using the number portability system.
Also, a stock commission paid by the carriers is calculated based on the monthly basic and usage fees paid by the users (we have acquired) over a specified period (about 5 years).
A portion of secondary agents' lump-sum and stock commissions becomes our revenue.