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Joint Venture Success: How BTS and SoftBank Transformed International Telecom Operations

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SoftBank’s international wholesale business has long been a key player in the global telecom landscape, yet it faced significant challenges—fraud, network quality issues, and outdated infrastructure. At the same time, the company aimed to expand strategically into Europe while optimizing costs and operational efficiency.

Meanwhile, BTS, a leader in ILD voice services, had its sights set on APAC, a highly complex but promising market. These complementary ambitions led to a game-changing collaboration: S and BTS.

 

Addressing Market Challenges

Rather than following the industry norm of outsourcing technology, SoftBank recognized the unique value BTS brought to the table—its proprietary technology and well-established industry presence. While most telecom players relied on third-party tech solutions, BTS had developed its own, making it a rare breed in the industry. SoftBank saw the opportunity to leverage this expertise to overcome its international wholesale telecom hurdles while benefiting from BTS’ market leadership in ILD voice.

The result? S and BTS—a joint venture combining SoftBank ILD voice business and BTS’ core strengths. This strategic partnership proved to be a masterstroke, seamlessly merging BTS Tech and operational excellence with SoftBank’s infrastructure and market access.

Norioki Sekiguchi, CEO of S and BTS explained:

“At the time, BTS was one of our business partners for voice termination, but during the discussion, we realized we have, you know, it’s a puzzle.

We faced quality issues and fraud challenges. Expanding the business into European countries would also have been very difficult. But on BTS’s side, they also wanted to expand into Asia. Then, we fit everything into a puzzle.”

Combining their expertise and resources, BTS and SoftBank steadily resolved each challenge and laid the groundwork for a thriving international venture.

Key Achievements and Operational Improvements

The impact of S and BTS has been transformative. Today, S and BTS manages 90% of Japan’s ILD traffic, demonstrating the efficiency and trust built through this partnership. Financially, the venture has soared, reaching an impressive $100 million in annual revenue. Key operational improvements include:

  • Efficiency and Cost Savings: Optimized network operations, reducing both CAPEX and OPEX.

  • Network Quality Improvement: Upgraded SoftBank’s international network, decreasing network-related complaints by 80%

  • Fraud Mitigation: Eliminated all fraud cases, saving millions in revenue.

  • Operations Optimization: Maximized both retail and wholesale operations, as cited by Luis Montero, Vice President APAC.

  • Expanded Product Portfolio: Introduced messaging and cloud services, creating incremental value for clients and partners.

Future Opportunities and Industry Collaboration

Building on this success, the partnership is set to expand into new areas of business further strengthening the joint venture, leveraging synergies not just between SoftBank and BTS but also within their broader group portfolios.

As Sekiguchi pointed out:

“When S and BTS Global was established, we expected 1+1 to equal not 2, but 3. In reality, it’s not 2—now I think it’s five or six.”

Montero added:

“With the right technology, solutions, and services, we continue to create incremental value for our partners and the entire market.”

A Blueprint for Success

The BTS-SoftBank joint venture exemplifies the transformative power of strategic partnerships in ComTech, a model for how telecom and tech can come together to drive efficiency, expand market reach, and create long-term value. By addressing critical industry challenges and leveraging each other’s strengths, the two industry leaders have created a model for success in the global market.

As S and BTS continues to innovate and expand, it sets a compelling precedent for future joint ventures aiming to disrupt markets and redefine industry standards.

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