Rakuten, an e-commerce company from Japan, which had an MVNO, decided to launch a mobile operator in 2019. With a legacy-free network based on OpenRan, it intended to compete on price by having lower costs.
Rakuten reached the mark of 5 million cell phones in 2021 and stopped growing. Group has accumulated US$ 5.4 billion in losses since 2019.
- “Despite the colossal investments it has made, signals remain weak in Japan's subways and skyscrapers, where city dwellers spend most of their lives, due to Rakuten's lack of low-band spectrum, ideal for indoor and wide areas coverage.
- As a solution, it extended a roaming agreement with KDDI, one of the Japanese companies. New StreetResearch analysts now believe this could be a precursor to a formal merger”
- (LightReading)
The Rakuten case is an example of the difficulties for new operators to enter mobile.
Brazilian new regional 5G operators are not being as aggressive as Rakuten, but they may face similar difficulties. We hope for their success, but they will need to develop strategies that make them viable.
5G
- This week I participated in the 5G Americas Analyst Forum 2023, which brought together 92 analysts from the region to Dallas.
- High-level event, where topics such as Spectrum and the evolution of 5G in the region can be discussed in depth, including a special section for Latin America.
- Among the highlights were private networks and the possibility of using slicing in their implementation.
- It was also clear that it will still take 2 to 3 years for 5G to have a competitive offering for IoT with RedCap.
- Anatel will release the use of 3.5 GHz in other 432 Brazilian municipalities this week.
- Huawei is the leader in the number of patents for 5G, followed by Qualcomm, Samsung, Ericsson and Nokia (LexisNexis)
Power poles
- Anatel has released access to the revision documents for the Pole Sharing Regulation, which must be analyzed by the Council at a meeting on Oct 24th.
Oi
- Oi's ON share showed a loss of 3.3% in the week and the PN share lost 3.0%. Ibovespa raised 1.4%.
- Oi's ON share presents a loss of 65.3% in the year to date and the PN share had a loss of 61.4%.
- The value of Oi's ON share fell to R$ 0.59, which led B3 to ask Oi to disclose procedures and a schedule to classify the price of its shares at a value equal to or greater than R$ 1.00 until March 27th, 2024.
MVNO
- Created just eight months ago, the virtual mobile operator Tá Telecom, which emerged from the consortium formed by fixed broadband providers to participate in the 5G auction, already brings together 102 regional ISPs. The objective was to win frequencies in the 5G auction and establish a new mobile operation in Brazil. However, the providers did not take any blocks, and the way they found to enter the cell phone market was through the MVNO model.
- Teleco is supporting MVNO Nation, Valencia (October 23rd to 25th) and we can provide “free of charge VIP invitations” for Brazilian MVNOs. If you are interested, contact me: etude@teleco.com.br
More highlights
- Artur Coimbra may replace Moisés Moreira, whose mandate as advisor ends on Nov 4th, as president of GAISPI, the Anatel group that coordinates the implementation of the 5G auction obligations.
- Anatel formalized with the TCU the request for a "Consensual Solution Request" in relation to the Telefônica/Vivo fixed-line telephone concession.
- Desktop closed a R$ 50 million financing contract with BNDES, to be used in equipment and cables produced in Brazil.
Coming weeks
Oct 17th Results 3Q23 of Claro and América Móvil
Oct 23rd to 25th: MVNO Nation, Valencia - Spain
Nov 1st 4G and 5G Private Networks Forum in Brazil (new date)
