Rakuten Mobile finally achieves the target "population coverage rate of 96%", the next issue is (Masahiro Sano)

Rakuten Mobile is an emerging mobile phone company whose area cover has long been an issue. Today (February 4, 2022), the company has announced that it has achieved a population coverage rate of 96% for 4G.

The population coverage rate of 96% has been set by Rakuten Mobile as an area development target for some time, and it was originally planned to be completed around the summer of 2021, five years ahead of the original plan. However, due to the direct impact of the shortage of semiconductors and the shortage of materials required for base station maintenance, area maintenance could not proceed as expected.

However, it seems that the procurement of the necessary semiconductors has finally come to light, and it seems that the population coverage rate has finally reached 96%. It wasn't five years ahead of schedule, but it's still four years ahead of the original plan, so you can see how Rakuten Mobile expanded its area at a rapid pace.

The main reason why Rakuten Mobile hastened to improve the area is probably the early reduction of roaming costs. Areas where Rakuten Mobile is not yet developed are currently covered by roaming to KDDI's line, but not only can Rakuten Mobile not be able to demonstrate its true essence, such as not being able to use it as much as you want in that area, but it also roams to KDDI every time it is used. You have to pay a fee, and the roaming cost is a factor in the deficit of Rakuten Mobile.

Since the use of roaming and related expenses will increase as the number of Rakuten Mobile subscribers increases, Rakuten Mobile wants to significantly advance area development, reduce roaming costs early, and reduce management damage as soon as possible. It was the real intention.

Therefore, from October 2021, when the population coverage rate exceeded 90%, we have announced a policy to end roaming in 39 prefectures in sequence, but with the achievement of the population coverage rate of 96% this time, we will meet with the next KDDI. It is thought that roaming will be terminated in the remaining eight prefectures around the spring of 2022, which is the time to renew the contract.

This is of course a positive factor for Rakuten Mobile, but it will be a negative factor for KDDI, which rents one of the networks, as roaming income from Rakuten Mobile will decrease in the future. In particular, KDDI's revenue, which has been declining significantly due to the recent reduction in mobile phone charges, has been supplemented by roaming revenue from Rakuten Mobile, and it seems that the expansion of Rakuten Mobile's area will be a major negative for management. increase.

However, at KDDI's financial results briefing held on January 28, 2022, Makoto Takahashi, the company's president, said that it would be okay if roaming revenue from Rakuten Mobile decreased. increase. The reason seems to be that the 3G service will be stopped at the end of March 2022, which is the earliest among the three major mobile phone companies.

Since 3G is an old communication standard, the cost of operating and maintaining equipment is higher than that of 4G and 5G, and KDDI has so far made a large amount of "winding" to migrate 3G users to 4G and 5G. I've been working on it. However, once the 3G service is terminated, these costs will no longer be necessary, so it seems that KDDI believes that even if roaming revenue from Rakuten Mobile decreases in the future, it can be offset by management cost reductions.

Of course, the impact of the reduction in mobile phone charges will continue, so it will be difficult to overcome the rough seas just by ending the 3G service. However, at least, there is no doubt that the roaming income from Rakuten Mobile has reduced the burden of winding, etc., and compared to NTT DoCoMo and Softbank, which are still winding toward the end of 3G. If so, it is certain that it has gained a management advantage.

Population coverage rate 96% is the starting line

Now, returning to Rakuten Mobile, with the achievement of a population coverage rate of 96%, is the company safe in the future? To be honest, the population coverage rate of 96% is, in a sense, just the starting line for a mobile phone company, and the company will increase it to a population coverage rate of over 99% in the future, just like other companies. Is required.

The remaining 4% of the area is mainly in mountainous areas and remote islands with a small population, and there are some areas where investment efficiency is poor and topographical conditions make it difficult to maintain. Will be. Rakuten Mobile is currently using new technologies to take advantage of its new entrants, such as using carbon tower type base stations that are lighter and cheaper than steel towers, and is working to improve the area of ​​such places in the future. In order to keep costs down and proceed with maintenance, it is also required to actively utilize infrastructure sharing that shares places and facilities with other companies.

In addition, dealing with traffic will become a problem in the future as the area expands. Since Rakuten Mobile provides a service that allows unlimited use of data communication even though it is a step-by-step system, problems such as the increase in users in urban areas and the congestion of networks, making communication difficult, become apparent. It seems that.

In that case, it will be necessary to install base stations more densely to deal with traffic, and it is also required to increase the amount of communication that can be performed at one time using multiple frequency bands including 5G as well as 4G. increase. However, with regard to the former, the problem of semiconductor shortage may reappear as the number of base stations increases, and with the latter, there is the problem that the frequencies assigned to Rakuten Mobile are few in the first place.

The frequency band for 4G licensed by Rakuten Mobile is only the 1.7GHz band with a width of 20MHz, and the 1.7GHz band assigned for 5G cannot be used in the Higashi-Meihan area including large cities. There are also 3.7GHz band and 28GHz band for 5G, which have a wider bandwidth, but due to the inconvenience of use and many restrictions on maintenance, Rakuten Mobile has not yet actively utilized it. I have.

Of course, Rakuten Mobile seems to expect new frequency band allocation / reallocation including the coveted platinum band. However, if the introduction of the frequency auction, which is currently under discussion by the Ministry of Internal Affairs and Communications, is made, it may be difficult for Rakuten Mobile to receive preferential treatment even if it is a new entry, so to be honest, there are still many issues. is.

Another thing is that Rakuten Mobile will be strongly required to take social responsibility in the future as it has become a company with an infrastructure that covers a wide range of the whole country. In fact, on February 1, 2022, Rakuten Mobile was designated as a "designated public institution" based on Article 2, Item 5 of the Disaster Countermeasures Basic Act, and in the event of a disaster, the mark of an emergency traffic vehicle will be issued to mobile base station vehicles, etc. , It is said that quick recovery response will be possible.

On the other hand, it will also lead to the constant need to prepare for equipment and human resources in case of a disaster. While dealing with disasters is a major cost factor, since proactive efforts directly lead to gaining the trust of customers, Rakuten Mobile's determination as an infrastructure operator will be determined in the future. Isn't it a big question?

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