Rakuten Mobile: No ordinary telco
Why did retail giant Rakuten, dubbed "the Amazon of Japan", decide to become Japan's fourth mobile operator? Does Rakuten see this as a genuine opportunity to run a profitable mobile network, or is diversification part of a bigger picture? Read the report to find out.
Mark Newman, TM ForumDownload Report
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Rakuten Mobile: No ordinary telco
Rakuten Group is a Japanese internet services company that has been dubbed “the Amazon of Japan”. It offers a huge range of services from banking and credit cards to e-commerce, travel and video entertainment. Rakuten has 1.4 billion “members” worldwide, but the vast majority of its business is in Japan. Indeed, its efforts to replicate success in other markets have been mixed. When Rakuten entered the mobile phone business as a mobile virtual network operator (MVNO) in 2014, it was not altogether a surprise. Many large retailers such as Tesco in the UK and France’s Carrefour have been MVNOs for a decade or more. For them, mobile is another service they can offer to customers which can be bundled into loyalty schemes and encourages visits to stores. Building and operating a nationwide telecoms network is another matter entirely. Indeed, this is the first time that a “retailer” has constructed a mobile network in any major developed country. In April, Rakuten Mobile launched LTE service in Japan, becoming the nation’s fourth mobile operator, but in May, the company announced that it will delay rolling out 5G until September because of the Covid-19 pandemic. So why did a retail giant decide to become a mobile operator? Does Rakuten see this as a genuine opportunity to run a profitable fourth mobile network in Japan, or is diversification part of a bigger picture? To answer these questions, we draw on extensive interviews with Rakuten executives and the company’s suppliers, along with in-depth research about the markets the company is targeting. Understanding the company’s approach is important in assessing the prospects for its new mobile network business, where Rakuten Mobile fits within the larger organization and how the company will roll out 5G services. Read the report to understand:
- How Rakuten is structured, how its partner ecosystem operates and the role Rakuten Mobile plays in its strategy
- The prospects for Rakuten in the mobile market with comparisons to new operators in other countries
- The unique cloud-based approach Rakuten has taken to develop its network and IT support systems
- How Rakuten is changing the relationship between CSPs and technology partners
- What other operators can learn from Rakuten’s experience
