Rakuten Mobile said it aims to have 60,000 base stations in operation by the end of fiscal year 2023
Japanese operator Rakuten Mobile said its 4G network reached 98% of the country’s population as of the end of the most recent quarter.
The telco said it had expected to reach a population coverage of 99% with its 4G in that timeframe, so it came very close to its goal.
In its earnings statement, the telco said the number of 4G outdoor base stations reached 52,003 as of the end of 2022; the company said it aims to have 60,000 base stations in operation by the end of its fiscal year 2023. In addition, the number of outdoor 5G base stations (outdoor, sub-6 macro base stations) increased to 7,058 nationwide as of the end of last year. In September 2020, Rakuten Mobile launched 5G services in parts of Tokyo, Kanagawa, Saitama, Hokkaido, Osaka and Hyogo. The service was initially offered via Non-Stand Alone (NSA) 5G architecture.
Rakuten Mobile also reported that the total number of subscriptions for its MNO and MVNO services reached 5.06 million as of the end of Q4 2022.
“In mobile services, we worked to improve network quality by focusing on installing our own base stations ahead of schedule. In addition to an increase in the number of users who started to pay telecommunication charges following the expiration of a campaign offering one year of free telecommunication charges, growth in device sales also contributed to increased revenue. On the other hand, network-related expenses such as depreciation also increased,” the telco said in its earning statement.
“As a result, the mobile segment recorded JPY368.6 billion ($2.7 billion) in revenue, a 62.0% year-on-year increase due to factors such as an increase in revenue from telecommunication charges. Although a segment loss of JPY492.8 billion was recorded due to ongoing prior investments such as the installation of our own base stations, the loss has contracted since its peak in the first quarter ended March 31, 2022,” the company said.
Rakuten also highlighted that roaming, construction and MVNO cost will be reduced significantly this year as more traffic will be on Rakuten’s network and major build-out already done.
”In mobile services, revenue from telecommunication charges is expected to increase due to an increase in new subscribers and increased data usage. We will continue to work on improving network quality in order to enhance customer satisfaction and acquire even more subscribers. However, operating expenses including depreciation are expected to increase along with the expansion of our network,” the company said. “On the other hand, we expect a decrease in roaming charges by switching our service provision from the areas covered under our partner’s network to the areas covered under our own network, as well as a decrease in other operating expenses by completing investment in base station facilities, and thereby aim to further improve losses.”
Rakuten Mobile said its spectrum in the so-called platinum band (800/900 MHz) will enable the company to boost 5G coverage in 2024 by making use of existing assets.
Meanwhile, revenue from software platform Rakuten Symphony grew to $231 million from $61 million in Q4 2021.
Rakuten Symphony’s CEO Tareq Amin said the unit closed 14 global contracts and is working on eight additional contracts, adding it aims for 40% revenue growth this year.
“We have a very healthy sales pipeline with over $4 billion of total revenue – or total opportunities that we are pursuing, and our sales team is working hard to convert these opportunities into revenues,” Amin said during a conference call with investors.
