Q. About the MNO business, it was mentioned that the 600 billion yen capital investment would be enough for nationwide coverage and that there are many merits for being a latecomer. Could you tell us in a bit more detail about the background to this figure and how you came to the conclusion that it will be enough?
A. (Yamada)
Looking at the previous frequency band allocation applications by eAccess and UQ, you can see that the two companies built a nationwide network with an investment of around 400 to 500 billion yen. Taking these examples into account, we believe that it will be possible to build a nationwide network with an investment of 600 billion yen. This figure was calculated based on estimates from vendors. Compared to the existing three carriers, we don’t need to invest in legacy technologies such as 3G, so the equipment can be simple. We have given a target of 15 million subscribers in a few years, but we don’t need to offer the same amount of capacity as the existing carriers, which have tens of millions of users. We also don’t need to update old equipment. In addition, the existing carriers have multiple frequencies, so in this way we can make the system simple. We are planning for full nationwide coverage, but rather than going suddenly for 99% coverage with our own equipment, we plan to borrow the network of the existing carriers for the first few years as we raise coverage up to near 100%. From this perspective, we believe the 600 billion yen figure for investment is sufficient.
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Year and Fourth Quarter 2017
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Q&A summary and supplement
A. (Yamada)
Looking at the previous frequency band allocation applications by eAccess and UQ, you can see that the two companies built a nationwide network with an investment of around 400 to 500 billion yen. Taking these examples into account, we believe that it will be possible to build a nationwide network with an investment of 600 billion yen. This figure was calculated based on estimates from vendors. Compared to the existing three carriers, we don’t need to invest in legacy technologies such as 3G, so the equipment can be simple. We have given a target of 15 million subscribers in a few years, but we don’t need to offer the same amount of capacity as the existing carriers, which have tens of millions of users. We also don’t need to update old equipment. In addition, the existing carriers have multiple frequencies, so in this way we can make the system simple. We are planning for full nationwide coverage, but rather than going suddenly for 99% coverage with our own equipment, we plan to borrow the network of the existing carriers for the first few years as we raise coverage up to near 100%. From this perspective, we believe the 600 billion yen figure for investment is sufficient.
global.rakuten.com/corp/investors/
And click additional at:
Year and Fourth Quarter 2017
Download
Q&A summary and supplement