Rakuten Mobile, Inc. (hereafter “Rakuten Mobile”), a subsidiary of Rakuten, Inc., announced today that it has received approval from the Minister of Internal Affairs and Communications for its 5th generation mobile communications system (5G) special radio station deployment plan for the 3.7 GHz frequency band (over 3,800 MHz and equal to and under 3,900 MHz) and 28 GHz frequency band (over 27.0 GHz and equal to and under 27.4 GHz).
1.Purpose of use of 5G network
In recent years, communications networks are expanding beyond mobile communications into a variety of fields including healthcare, education, energy supply, and agriculture, and with the development of the Internet of Things (IoT), where everything is connected to the internet, the importance of the underlying communications network infrastructure is expected to increase dramatically. 5G, with its high data transmission speeds that far surpass existing mobile communications systems, ultra low latency, which enables data to be transmitted with an extremely small time lag, as well as dynamic multi-connectivity that enables a dramatically larger number of devices to be connected simultaneously than existing mobile communications systems, is expected to become the ICT foundation in the era of artificial intelligence (AI) and IoT. With these characteristics, there are also high expectations for the utilization of 5G in solving regional issues and regional revitalization.
5G is set to become a part of the social infrastructure of the 2020s. With 5G, the Rakuten Group aims not only to offer a greater level of convenience to its users, but also to utilize the technology in a variety of fields and create new business opportunities to solve social issues and support regional development.
2. Capital Expenditure
The amount of capital expenditure[1] related to 5G network construction is expected to be at most 200 billion yen. In addition to funding through capital injection from Rakuten, Inc., financing by Rakuten Mobile that is non-recourse to Rakuten, Inc.[2] is planned. Concrete business prospects and the potential impact on Rakuten Group financial results will be disclosed at an appropriate
[1] Excluding capital expenditure related to special radio stations for 1.7 GHz frequency band.
[2] Leasing, securitization finance, etc.