Rakuten Mobile grabs stake in JTOWER as losses increase
By Harry Baldock, Total Telecom
Monday 18 October 21
Japan’s newest mobile operator said that the new deal will serve to lower the cost of deploying its 4G and 5G networks.
Rakuten Mobile has reportedly purchased a minority share in Japanese tower infrastructure specialist JTOWER, hoping to lower their network deployment costs in the face of rising debt.
The operator launched its commercial 4G services back in April 2020 and since then has expanded.
But building mobile network infrastructure is not cheap and the process so far has already seen Rakuten Mobile slip into considerable debt. In the first half of 2021, the company reported losses of around $1.73 billion, up from around $780 million one year earlier.
Naturally, the largest part of Rakuten’s losses comes from the expensive process of deploying a 4G and 5G network from scratch. There are other factors too, however, such as the enormous deal that Rakuten offered at the time of its commercial launch, giving new customers one year’s free, unlimited data plans. These plans have begun to expire as of April 2021.
By late August 2021, Rakuten had managed to attract around five million mobile subscribers, with the company estimating that they would break even when subscribers reached seven million, something they expect to reach in 2023.
Now, it is hoped that the deal with JTOWER, for an undisclosed sum, will help alleviate some of the financial pressure of the Rakuten’s network rollout.
www.totaltele.com/511359/...take-in-JTOWER-as-losses-increase
By Harry Baldock, Total Telecom
Monday 18 October 21
Japan’s newest mobile operator said that the new deal will serve to lower the cost of deploying its 4G and 5G networks.
Rakuten Mobile has reportedly purchased a minority share in Japanese tower infrastructure specialist JTOWER, hoping to lower their network deployment costs in the face of rising debt.
The operator launched its commercial 4G services back in April 2020 and since then has expanded.
But building mobile network infrastructure is not cheap and the process so far has already seen Rakuten Mobile slip into considerable debt. In the first half of 2021, the company reported losses of around $1.73 billion, up from around $780 million one year earlier.
Naturally, the largest part of Rakuten’s losses comes from the expensive process of deploying a 4G and 5G network from scratch. There are other factors too, however, such as the enormous deal that Rakuten offered at the time of its commercial launch, giving new customers one year’s free, unlimited data plans. These plans have begun to expire as of April 2021.
By late August 2021, Rakuten had managed to attract around five million mobile subscribers, with the company estimating that they would break even when subscribers reached seven million, something they expect to reach in 2023.
Now, it is hoped that the deal with JTOWER, for an undisclosed sum, will help alleviate some of the financial pressure of the Rakuten’s network rollout.
www.totaltele.com/511359/...take-in-JTOWER-as-losses-increase