What's Happening?
Rakuten Mobile, a Japanese telecommunications operator, has installed 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 coverage and increasing network capacity. The company reported significant subscriber and revenue growth, with nearly 9 million subscribers by the end of June, up from 7.7 million a year earlier. Mobile service revenue increased by 26.9% to JPY47.7 billion ($323 million), and the average revenue per user (ARPU) rose by 3.8% to JPY1,773. Rakuten Mobile also achieved its second consecutive EBITDA-positive quarter, with standalone EBITDA rising by JPY19.1 billion year-on-year to JPY5.6 billion.
Why It's Important?
The expansion of Rakuten Mobile's 5G network is significant for the telecommunications industry, particularly in Japan, as it enhances network stability and capacity. This growth reflects the company's strategic commitment to Open RAN and software-defined infrastructure, positioning Rakuten Symphony in direct competition with traditional vendors. The partnerships with Cisco, Nokia, and F5 for deploying 5G Standalone networks are expected to drive innovation and simplify operations through AI-driven systems. The increase in subscribers and revenue indicates a strong market position, potentially influencing other carriers to adopt similar strategies.
What's Next?
Rakuten Mobile plans to continue its network expansion in the second half of the year, further improving coverage and capacity. The company is also integrating its agentic AI platform, Rakuten AI, into its ecosystem, enhancing user experiences across commerce, mobile, and content. This AI platform will be integrated into Rakuten Ichiba, the company's e-commerce marketplace, later this year, potentially transforming customer interactions and service delivery.
Beyond the Headlines
Rakuten Mobile's approach to network expansion and AI integration highlights a shift towards more modular and cloud-native solutions in the telecommunications industry. This strategy may influence global telecom operators to reconsider traditional vendor relationships and explore open interfaces and multi-vendor integration, potentially leading to more competitive and innovative market dynamics.
