What's Happening?
Rakuten Mobile, a division of the Japanese conglomerate Rakuten, has announced an increase in its capital expenditure to 200 billion Japanese yen ($1.3 billion) for 2026. This decision comes as the company experiences a surge in subscriber numbers, particularly in urban areas. The company reported a positive EBITDA of 12.9 billion yen ($85 million) for the first time since its launch. The increased spending is aimed at accelerating network construction, especially in congested urban areas and subways, to handle the growing traffic. Rakuten Mobile has also formed partnerships with companies like Airspan and Fujitsu to enhance its network capabilities.
Why It's Important?
The increase in capital expenditure by Rakuten Mobile signifies a strategic move to strengthen
its market position in the competitive telecommunications sector. By focusing on urban areas, the company aims to capture a larger share of the market, which is currently dominated by established players like NEC, SoftBank, and KDDI. The positive EBITDA marks a significant financial milestone for Rakuten Mobile, indicating improved operational efficiency and potential for future profitability. This development could influence the competitive dynamics in the telecommunications industry, potentially leading to better services and pricing for consumers.
What's Next?
Rakuten Mobile plans to continue expanding its network infrastructure, focusing on deploying 5G technology and increasing bandwidth in high-traffic areas. The company aims to build closer relationships with construction firms to avoid delays and ensure timely completion of projects. As Rakuten Mobile continues to grow its subscriber base, it may explore additional partnerships and technological innovations to enhance its service offerings. The company's financial performance and strategic initiatives will be closely watched by industry analysts and investors.
