January 31, 2017
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)
To whom it may concern

TOKAI Group Makes Full-Scale Entry into MVNO Business
Service launch for low-cost SIM service “LIBMO”

TOKAI Communications Corporation (hereinafter “TOKAI Communications”), a wholly owned
subsidiary of TOKAI Holdings Corporation, began sales of low-cost SIMs in 2014, and will now
make a full-scale entry into the MVNO1 business, launching the “LIBMO” low-cost SIM service2 onFebruary 23, 2017, as described in the attachment.
In tandem with the proliferation of smartphones, the number of people using low-cost
SIMs—which provide low-cost mobile communications services through leasing lines from major
mobile communications carriers—has grown rapidly over the past several years. As of the end offiscal 2015, the number of such lines grew 65% year-on-year to 5.39 million, and this figure isforecast to grow to 11.70 million by the end of fiscal 20173.
Additionally, with the intent of lowering communications fees for consumers, the Ministry ofInternal Affairs and Communications recently announced guidelines4 to allow for easy transitionbetween communications carriers. As a result, it is projected that the number of people using
low-cost SIM services will see further growth.
Handling the information and communications business, a mainstay business of the Group
alongside the gas business, TOKAI Communications has achieved the number four5 position as an
ISP service provider in Japan, providing services to 780 thousand customers. TOKAI
Communications has also engaged in active sales promotion by launching the Hikari Collaboration
service in February 2015, which provides optical broadband services using fiber optic lines fromNTT East and West and its complete customer support services as a package deal. Through afull-scale entry into the MVNO business, TOKAI Communications will seek to provide a one-stop
service for both fiber optic fixed-line services and mobile communications services, both of which arenecessities for customer lifestyles.
“LIBMO” (http://www.libmo.jp/) will have a pricing structure that is sufficiently competitive withmajor mobile phone carriers and low-cost SIM providers. It will be actively promoted and positioned
as a strategic product not only for capturing new customers in mobile communications services, butas a method to assist in expanding sales and improving customer retention of the fixed-line services
by providing it packaged with Hikari Collaboration.
Under the TLC (Total Life Concierge) vision, TOKAI Group proposes comprehensive lineup ofvarious lifestyle infrastructure services, including energy, information and communications, andCATV. Going forward, by continuing to actively work toward providing products and services thatcan contribute to solving regional and social issues, the Group will aim to improve customer
satisfaction.
1 MVNO:

Mobile Virtual Network Operator. Companies that sell low-cost SIMs and provide wireless data
communications services

2 Low-cost SIM:

Common name for wireless service that provides a mobile data communications service forsmartphones at low pricing levels by leasing communication lines from major mobile
communications carriers (DoCoMo, au, Softbank)

3 Estimates based on research by MM Eesearch Institute, Ltd. Number of lines contracted by independent MVNOs

for unique SIM services that utilize SIM cards with unique pricing plans.
4 In “Guidance Eegarding Conditions and Devices for Providing Mobile Services,” an attachment to the “Eesults ofOpinion Collection on Guidelines Eegarding Conditions and Devices for Providing Mobile Services” documentation
published by the Ministry of Internal Affairs and Communications on January 10, 2017, major mobile
communications carriers have been requested to reduce the period for removing SIM locks from the current six
months to three months
5 Source: Article published by the Nikkei Marketing Journal on November 5, 2014

Contact: Yoshihiro Taniguchi
Public Eelations and Investor Eelations Office
TEL: +81-(0)54-669-7676
Email: overseas_IE@tokaigroup.co.jp

Service Comparison with Major Mobile Carriers◎ Optical Internet and family smartphone (3 units) can be used at a price lessthan half of major mobile carriersMonthly fees（unit : Yen）

Set plan for optical line with smartphone

Basiccharge

Optical line (For detached house)

5,100“LIBMO” with 3 smartphones

4,620

OurServices（10GB sharing with Voice call func.*1）

Optical line (For detached house)
Major
mobile3 smartphones
company （10GB sharing with Voice call func.
Aunlimited*2）
Optical line (For detached house,
Major
Required option)
mobilecompany 3 smartphones（2GB per device (Total 6GB) with VoiceB

Set
discount

Offerprice3009,420

1,200

20,5001,389

23,811

5,200
16,5005,700
19,500call func. unlimited*3）※Not include device fees
*1 Voice call usage fee 20yen/30 seconds for domestic call, *2 Within 5 minutes call free for domestic call, excesses are 20yen/30 seconds*3 Free all time for domestic call for domestic call

1

Comparison of services with carrier sub-brands◎ When used in set with our optical Internet service, data communication volume
is tripled even when compared to topical carrier sub-brands, and the usage fee
is lowest!
（unit : Yen）
Carrier sub-brandsCarrier sub-brands
LIBMOCDPlan

Voice call

3GBwith Voice function
Voice call pack 30 *1880

1GB1GBst（2GB for 1 2 years） （2GB for 1st 2 years）
with Voice function with Voice function
Flat fee *2

Flat fee *3

2,460

2,980

2,980

（Monthly fee in 1st year）

2,060⇒1,960

1,980

1,980

（Monthly fee in 2nd year）

2,460⇒2,360

2,980

2,980

Total cost in 2 years

54,240⇒51,840

59,52059,520

Basic monthly fee*4*4*4※Not include device fees. Apply the first year discount of each company*1 Provide flat-rate calls within 30 minutes per month*2 Up to 300 calls within 10 minutes / time are charged for a fixed amount (After February 1, 2017, It will be unlimited number of calls)*3 Total of calls within 5 minutes up to 30 minutes Fixed amount (After March 1, 2017, It will be unlimited number of calls)*4 Discount applied when using with our optical Internet service

2

January 31, 2017
TOKAI Communications Corporation

To whom it may concern

Launch of “LIBMO” Low-C
Low Cost
ost Mobile Service to Reduce Mobile Phone Fees by 75%
TOKAI Communications Corporation (Headquartersr Shizuoka City, Shizuoka; President & CEOr
Katsuhiko Tokita; hereinafter the “Company”) will launch low
low-cost
cost mobile service “LIBMO” on February 23,2017.
Ahead of the service launch, the Company will start acc
acceptinH
eptinH advance subscription orders from February 1.
“LIBMO” is a low
low-cost
cost mobile service that enables voice and data communications within the Xi® service
area of NTT DOCOMO, INC. The service lineup will have the four tiers of the LiHht Plan, 3GB Plan, 6GB Plan,
and 10GB Plan, allowinH customers to choose service accordinH to their needs.
needs. Plan pricinH starts at 1,780 yen(excludinH
excludinH taxtax)) per month for a combination of data communica
communication,tion, voice communication, and smartphonedevice. Additional benefits will also be available such as packaHe discounts for customers also subscribinH to
the Company’s internet
nternet connection services (@T COM Hi
Hikari,kari, TNC Hikari, etc.) and one year free offer ofinternet
nternet security service “TOKAI SAFE.”At service launch, the Company will implement a “Start CampaiHn” that will provide a discount of 400 yenper month to usaHe fees for a period of one year. (CampaiHn periodr February 23, 2017 to May 31, 2017)* The
he “Start CampaiHn” applies to customers choosinH the 3GB Plan, 6GB Plan, or 10GB Plan and subscribinH to the voice communication service.

Currently, basic service fees for Heneral smartphone use at majo
majorr carriers are hiHh, at over 6,000 yen amonth.. By sswitchinH
witchinH to “LIBMO,” fees can be cut by as much as 75%.
The Company has already been providinH a lowlow-cost
cost mobile service under “Mobile 4G/D
4G/D,” but its full-scale
full scale
entry into the MVNO business will provide a more attractive serv
service
ice menu and pricinH structure for customers.
GoinH forward, the Company will make efforts to provide better services that aim to make customers’ mobile
lifestyles fun and rich under the Total Life ConcierHe vision of the TOKAI Group.

♦ About “LIBMO”◊Service launchr February 23, 2017

◊Basic fees (excludinH tax)
Initial costr Administrative fee of 3,000 yen
Monthly fees
Data communication +Plans

Data communication only

Data communication + SMSLiHht Plan1

480 yen620 yen1,180 yen

3GB Plan

880 yen

1,020 yen

1,580 yen

6GB Plan

1,480 yen

1,620 yen

2,180 yen

10GB Plan

2,280 yen

2,420 yen

2,980 yen

Voice communication2*1 Data communication volume is unlimited, with a maximum transfer rate of 200kbps.
*2 SMS use is also enabled for voice communication subscriptions.
♦ Discount services◊Hikari Collaboration packaHe discountIf LIBMO is used in combination with a fiber optic internet connection service provided by the Company,a maximum discount of 300 yen will be applied to the fiber optic internet connection service fee.
* This will also be applied to customers who already subscribe to the Company’s fiber optic internet connection services.
* The amount of the discount is 100 yen for the 3G Plan, 200 yen for the 6G Plan, and 300 yen for the 10G Plan.
* One LIBMO contract will apply for a discount for fiber optic internet connection services. For multiple LIBMO
subscriptions, the contract with the highest discount amount will apply.

◊Free use of TOKAI SAFE up to one year
TOKAI SAFE, an internet security service that can be used on up to six devices, will be provided free ofcharHe for up to one year.
* The free period will start in the month that LIBMO service beHins, and will last until the final day of thetwelfth month.

♦ Advance subscription order benefit campaiHn◊

CampaiHn periodr February 1, 2017 to February 28, 2017◊

CampaiHn contentr No payment of 3,000 yen (excludinH tax) administrative fee♦ Start campaiHn◊

CampaiHn periodr February 1, 2017 to May 31, 2017◊

CampaiHn content (Monthly usaHe fee *excludinH tax)
If subscribinH to voice communication services, a 400-yen discount will be applied to the monthly usaHe feefor one year.
*The liHht plan is excluded from the start campaiHn.

◊CampaiHn application example (Smartphone devicer FREETEL Priori4 (24 payment installments)*excludinH tax)

1,580 yen per month for 3G Plan (Voice communication) + 600 yen per month for smartphone device －400 yen per month discount = 1,780 yen per month[For enquiries reHardinH the service]Business Development Department, Mobile Communication Business Department,
Consumer Sales Division
TOKAI Communications Corporation
E-Mail：LIBMO-SALES@tokai-Hrp.co.jp