On Thursday, Rakuten founder and CEO Hiroshi Mikitani’s net worth increased by US$760 million, and the share price of its Japanese e-commerce giant soared due to its first mobile network transaction in Europe.
The Tokyo-based company announced that it will provide German wireless operators 1 & 1 with its low-cost 5G virtual telecommunications technology. According to Nikkei reports, Rakuten will receive US$2.29 billion to US$2.74 billion through the transaction in the next 10 years. Asia. On Thursday, 4,444 Rakuten shares rose 8% to 1,358 yen (12.4 US dollars). Now, Miki Tani’s wealth has reached $7.7 billion on the real-time billionaire list, making him the sixth richest person in Japan.
In 2019, Miki Valley Valley invested 5.5 billion U.S. dollars to launch a new telecommunications network, by providing a cheaper network and flexible called Radio Access Network (RAN).
is different from traditional networks usually provided by network providers. The network functions of RAN are in the cloud and run by software. RAN can reduce operation and maintenance costs by at least 30%, and allows operators to flexibly cooperate with different manufacturers because it is not blocked by hardware vendors.
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. Rakuten launches its mobile devices.
According to the announcement, the RAN network will be launched in Japan in April 2020. Now this technology will help 1 & 1 become the fourth largest operator in Germany, second only to Deutsche Telekom, O2 from Vodafone and
In an interview with Forbes Asia two years ago, Miki Tani said that Rakuten plans to use Japan’s 100 million customers who have already used Rakuten e-commerce, credit cards, online banking, online commerce and content to use its services and mobile. Rakuten hopes to build a new telecommunications network in Japan in half the time and the cost is 40% lower than the cost required to build a traditional system.
“Our operations are much more flexible than our competitors, and we can use the existing Rakuten ecosystem to enrich our services,” he told Forbes Asia in 2019. “And I think people don’t really care whether it is NTT, Softbank or Rakuten, so a lot. This is mainly about connectivity, speed, price and what additional services we can provide.”
Rakuten also announced the acquisition and operation of the RAN network on Thursday. American mobile technology company Altiostar Networks. The partnership aims to “accelerate deployment” to provide software-centric virtualization services to the global mobile industry,” Rakuten said in a separate announcement.
“We are entering a new era where mobile network operators can choose how to build and deploy networks by cooperating with the world’s most innovative software companies to create open and interoperable solutions.” Said in a statement.
In early March, Rakuten raised US$2.2 billion by issuing new shares to Japan Post, Wal-Mart and Tencent to fund the launch of its mobile operator business.
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