What's Happening?
Rakuten Mobile, a Japanese telecommunications company, has announced the installation of 2,930 new base stations during the second quarter of 2025. This expansion is part of a broader plan to deploy over 10,000 sites within the year, aimed at improving network coverage and capacity across Japan. The company reported significant growth in its subscriber base, reaching nearly 9 million users, up from 7.7 million the previous year. Additionally, Rakuten Mobile experienced a 26.9% increase in mobile service revenue, totaling JPY47.7 billion ($323 million), and a rise in average revenue per user (ARPU) by 3.8% to JPY1,773. The company has also achieved its second consecutive EBITDA-positive quarter, with standalone EBITDA increasing by JPY19.1 billion year-on-year to JPY5.6 billion. Rakuten Mobile has partnered with Cisco, Nokia, and F5 to enhance its 5G Standalone network capabilities, leveraging AI-driven systems for improved network stability and operational simplicity.
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Why It's Important?
The expansion of Rakuten Mobile's 5G network is significant for the telecommunications industry, as it demonstrates the company's commitment to enhancing network infrastructure and service quality. By increasing coverage and capacity, Rakuten Mobile is positioned to better compete with other major carriers, potentially attracting more subscribers and increasing market share. The partnerships with Cisco, Nokia, and F5 highlight a strategic move towards cloud-native and software-defined infrastructure, which could set a precedent for other telecom operators seeking to innovate and streamline operations. The growth in subscriber base and revenue indicates a positive trajectory for Rakuten Mobile, which could lead to increased investment and development in the sector. Furthermore, the integration of AI-driven systems may pave the way for more advanced and efficient network management solutions, benefiting both the company and its customers.
What's Next?
Rakuten Mobile plans to continue its network expansion efforts in the second half of the year, with the goal of deploying over 10,000 sites by the end of 2025. The company is expected to further enhance its 5G capabilities through ongoing collaborations with technology partners, potentially leading to new service offerings and improved customer experiences. As Rakuten Mobile integrates its agentic AI platform into its e-commerce marketplace, Rakuten Ichiba, later this year, it may drive further innovation and cross-ecosystem enhancements. The company's strategic focus on Open RAN and modular partnerships could influence industry standards and encourage other telecom operators to adopt similar approaches. Stakeholders, including competitors and technology partners, will likely monitor Rakuten Mobile's progress closely, assessing the impact of its network expansion and technological advancements on the broader telecommunications landscape.
Beyond the Headlines
Rakuten Mobile's approach to network expansion and technology integration reflects broader trends in the telecommunications industry, such as the shift towards cloud-native infrastructure and AI-driven solutions. The company's commitment to Open RAN and software-defined networks may challenge traditional vendor models, potentially leading to increased competition and innovation. The integration of AI into mobile and e-commerce platforms could have long-term implications for user experience and service personalization, setting new standards for customer engagement. As Rakuten Mobile continues to expand its network and technological capabilities, it may influence regulatory and policy discussions around telecommunications infrastructure and digital innovation. The company's strategic decisions could also impact global telecom markets, as other operators consider similar approaches to enhance their networks and services.
