Worldwide

Rakuten seeks license to become Japan's fourth major mobile carrier

Rakuten seeks license to become Japan's fourth major mobile carrier”

Japan's largest e-commerce company wants to shake up the country's wireless market. Rakuten is now a $14 billion internet giant that employs more than 14,000 people.

Like Amazon, its counterpart in the U.S., Rakuten is known for the internet shopping portals it has. Run by its billionaire founder, Hiroshi Mikitani, it also has a hand in a variety of other services, including video streaming, messaging apps and payment services. One of Japan's top wireless providers, SoftBank, is aggressively investing in internet and technology companies around the world.

Rakuten is attempting to move in the opposite direction.

Rakuten said in a press release that it will apply to the Ministry of Internal Affairs and Communications for frequency band allocation for the fourth generation mobile communications system (4G), and if approved, will launch this new business in 2019.

If successful in its bid for a 4G mobile license, Rakuten would become Japan's fourth wireless carrier and have to compete against NTT Docomo, SoftBank, and KDDI. "In Japan, the proportion of household spending taken up by telecommunication expenses is rising each year, and the reduction of the financial burden on consumers of mobile phones and other communications expenses is often cited to be a major social issue".

Investors seemed unsettled by the announcement.

Rakuten shares fell 3.2% in morning trade.

In its statement Thursday, Rakuten underscored the need to introduce competition in a market that was monopolised by existing players.

The Japanese government and other critics have repeatedly slammed the big three carriers over skyrocketing prices, pressing them to offer cheaper plans.

Rakuten believes it can be a difference maker if the central government made a decision to give it a part of the available 4G frequencies.

Rakuten already acts as an MVNO (Mobile Virtual Network Operator), renting network space from licence holders, and has over 1.4m customers, but having its own licence would represent a significant shift in business operations for the company.



Like this

loading...
loading...

Latest


12 April 2018
New Jersey Looking Towards Sports Betting
New Jersey has demonstrated recently that financial returns from legalising gambling, in particular online gambling can be huge . As of April 2018 New Jersey have spent a massive $7.2M dollars in the fight to legalise sports betting within the state borders.

14 December 2017
Two Stocks in Concentration: The Procter & Gamble Company (PG), Chevron Corporation (CVX)
Shares of Procter & Gamble Company (PG) have a 7-day moving average of 90.58. 112 funds opened positions while 620 raised stakes. After $0.66 actual EPS reported by Abbott Laboratories for the previous quarter, Wall Street now forecasts 10.61% EPS growth.

14 December 2017
Trail Blazers at Heat
Ellington finished 1 of 3, sinking his only bucket in the second half on a three-pointer with 5:56 to play to Miami up 91-89. Overall, Miami shot 52.2 percent from the floor in the first quarter, including 8-of-13 on three-pointers (61.5 percent).

14 December 2017
Polygamist Leader Lyle Jeffs Sentenced To 5 Years

14 December 2017
'Marvel's The Punisher' Gets A Season 2 Netflix Renewal

14 December 2017
Sinclair Broadcast Group (SBGI) Upgraded by BidaskClub to Buy

14 December 2017
Johnson & Johnson (JNJ) PT Raised to $161.00 at BMO Capital Markets
Janney Montgomery Scott Limited Liability Corp owns 0.03% invested in Marathon Petroleum Corporation (NYSE:MPC) for 39,298 shares. It is flat, as 50 investors sold JNJ shares while 878 reduced holdings. only 105 funds opened positions while 667 raised stakes.

14 December 2017
Blue Origin successfully tests new Shepard rocket with 'Mannequin Skywalker'
However, it continued to fly and then successfully landed, along with the crew capsule, which was the primary goal of the test. Blue Origin and SpaceX are the only space ventures, private or public, which have demonstrated reusable space flight systems.

13 September 2017
Casino "SL Casino Riga" of Storm International chain to open in Riga
Guests could relax playing the most popular slots, roulette and video poker, as well as enjoy original entertaining show programs. The interiors are made in soft colors and the muffled lighting is done to create an atmosphere of luxury and relaxation.

23 June 2017
Marvel Looks To Shake Its Poor Gaming Reputation
The games are well designed with attractive graphics and extensive content, but neither is viewed as a flawless experience. These games tend to be actually well done for what they are, and in a way they’ve been the pride of Marvel gaming.