Japanese online retailer Rakuten offers 5G cell phone rate for $30
The Japanese online retailer Rakuten Inc. has recently started offering a low-cost 5G cell phone tariff, operated with a cloud-based network. With this, Rakuten is undercutting other network providers who were previously criticized for their high prices, and could also significantly disrupt the global pricing structure. A 4G tariff was already offered in April, which is also based on a cloud solution and is operated with commercially available hardware for the infrastructure. According to Rakuten, the initial investment was significantly reduced as a result.
Rakuten’s 5G mobile tariff costs 2,980 yen ($28) per month and is about 70% cheaper than the 5G tariffs of competitors. Japan’s new Prime Minister Yoshihide Suga recently criticized the mobile operators for their high prices while the telecommunications group NTT promised to reduce prices when taking over market leader NTT Docomo. Should other companies give in to government pressure and also lower their prices, it could be difficult for Rakuten to gain new customers. While competitors are investing large sums in expanding infrastructure and network coverage, Rakuten’s customers often have to accept poor signal coverage due to the low price.
Rakuten’s radio network is supported by numerous industrial companies and challenges traditional service providers. Rakuten itself refers to its 5G network as an exemplary model for the cloud-based technology “Rakuten Communications Platform” and hopes that other companies will build their own networks with identical functionality. The Japanese Telecommunications and Radio Certification is a necessary approval for many radio and telecommunications products in Japan. The Japanese Radio and Telecommunications Law applies to all products that use the radio spectrum and operate below 3 THz. Telecommunication and Radio Certification for Japan is also known as Japanese Radio Law, Japanese Telecommunication Business Law, TELEC Certification and MIC Certification, as the Ministry of Internal Affairs and Communications (MIC) is the competent authority for this certification. Are you interested in certification of products for the Japanese market? Then please do not hesitate to contact us. We will check for you whether your product is subject to an obligation to obtain telecommunications and radio certification and will prepare a non-binding offer for telecommunications and radio certification.
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