Rakuten makes first mobile foray into Europe as Japanese tech giant grapples with debt overhang
Publishing timestamp: 2023-12-08 10:58:44
Summary
Rakuten and German telco 1&1 have launched a mobile network based on Open RAN architecture in an effort to boost Rakuten's loss-making mobile division. The network is Europe's first fully virtualized 5G network based on Open RAN technology. Rakuten believes that mobile will be one of its most profitable businesses and is confident in its ability to service its debts. However, the mobile division has remained unprofitable and debts have mounted, leading to concerns about the company's overall performance. Rakuten is taking steps to raise money, including selling shares and issuing new shares, to service its debt. Despite the challenges, Rakuten's CEO, Hiroshi "Mickey" Mikitani, is optimistic about the future profitability of the mobile business and believes that the company's cost structure gives it a competitive advantage.
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Keywords: technology, internet, telecommunications, rakuten group inc, business news,