Rakuten buys JTower stake to cut network rollout costs - Mobile World Live

Rakuten buys JTower stake to cut network rollout costs

18 OCT 2021

Rakuten Mobile formed a capital tie-up with JTower and agreed to take over a part of its shares, as the operator seeks to reduce costs associated with the development of 4G and 5G networks through infrastructure sharing.

In a joint statement, the pair explained the move will enhance their cooperation, and promote sharing of facilities and towers for indoor and outdoor use in building networks, while also creating a more comfortable communication environment.

The companies believe infrastructure sharing allows them to “develop a network in a short period of time and at low cost compared to the case where equipment is installed by a mobile carrier alone”.

As part of the deal, Rakuten Mobile will acquire a stake from JTower’s president and CEO Atsushi Tanaka for an undisclosed amount.

It builds upon earlier deals involving the use of JTower’s infrastructure by Rakuten Mobile since 2020.

The operator has been putting efforts into cutting costs in its operations as it booked a rise in its operating loss in Q1.

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Yanitsa Boyadzhieva

Yanitsa joins Mobile World Live as a Reporter based in London. She has more than 5 years’ experience at various media outlets in her home country Bulgaria. She started her career as a political reporter, followed by taking editor roles...

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