Illustration: Rakuten. (Image via Japan Today)

Rakuten delays wireless network service until April 2020

Alfonsus Adi Putra
Business & Industry
Internet & IT
Sep 07, 2019
2057
Due to the delay in building the network, one of the biggest interest firm in Japan, Rakuten, had to postpone its generous wireless network service for 6 months, that is until April 2020.

It was regrettable for Rakuten that it met obstacles in building the base stations. Rakuten reportedly is using cloud-based software and commoditized hardware for the service. Japanese Ministry of Telecommunication urged Rakuten to finish the installation faster.

Had the service worked, it would have been a major breakthrough for Japanese telco history, lowering barriers to new market players, said Hiroshi Mikitani, the CEO of Rakuten. Mikitani added that the postpone was to ensure the stability of the network to prevent any uncalled complaint.

The gesture was once hailed by the Japanese Chief Secretary of Cabinet, Yoshihide Suga. Even more, Suga stated that all network providers in Japan should have followed Rakuten’s stead to ensure connectivity throughout Japan.

“Take an example from Rakuten with its cheap and affordable service. We (the Japanese government) sincerely hope that other companies can follow its example,” stated Suga on Friday (6/9).

Supposedly, Rakuten would give free wireless network service for its first 5,000 applicants in October as try-outs. Commercially, the service would be unveiled in Spring 2020. However, Rakuten failed to live to its expectation, which means a 6% drop in Rakuten’s shares.

In August, Rakuten reported a huge blow due to mass investment in the wireless network and the drop of its stake's price in Lyft Inc, an online ride-hailing service based in San Fransisco.

Source: https://japantoday.com/category/tech/Rakuten-to-delay-start-of-wireless-network-service-until-April

Business , Telecommunication , Asia , Japan , Rakuten