April 9, 2018
  • RAKUTEN, INC.

Notice Regarding Approval of Special Base Station Deployment Plan (1.7 GHz Frequency Band Allocation)

 

  Rakuten Mobile Network, Inc., a subsidiary of Rakuten, Inc., announced today that it has received approval from the Minister of Internal Affairs and Communications for its 4th generation mobile communications system (4G) special base station deployment plan for the 1.7 GHz frequency band (over 1,825 MHz and equal to and under 1,845 MHz). 

  Rakuten Mobile Network, Inc. will now further accelerate preparations in line with the approval of the plan, with the aim of launching its service as a Mobile Network Operator (MNO) in October 2019.

  Further information will be disclosed at an appropriate time, taking into account the progress of the business plan. Regarding funding for this matter, as mentioned in the notice titled “Rakuten Announces Intent to Enter into Mobile Network Operator (MNO) Business” released on December 14, 2017, a maximum of JPY 600 billion is planned to be raised. Of this amount, a maximum of JPY 200 billion will be raised by Rakuten, Inc. through hybrid financing[1] and other methods and invested into Rakuten Mobile Network, Inc. The remaining funding will be raised by Rakuten Mobile Network, Inc. through bank borrowing and others[2].

 

 

[1] Hybrid financing has the characteristics midway between debt and equity. While being a type of debt, it has traits similar to equity, such as optional interest deferral, very long term return period, and subordination in liquidation or bankruptcy. Through hybrid financing, Rakuten anticipates to receive a constant equity approval from rating agencies without stock dilution.

[2] Leasing, securitization finance, and others are anticipated, in a non-recourse scheme to Rakuten, Inc.

*Please note that the information contained in press releases is current as of the date of release.

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