Rakuten Group has delayed its target to expand its mobile network coverage across Japan, due to the global chip shortage slowing progress on building its network. Rakuten Mobile has now set March 2022 as its deadline for 4G network coverage of 96 percent of the population in its service area, Nikkei reports, citing a company statement. Rakuten had initially aimed for the summer of 2021, then for later this year.
Rakuten Mobile 4G network covers 94.3%
Rakuten Mobile’s target postponement is mainly related to delays in installing base stations. Rakuten Mobile plans to build a network of 44,000 4G base stations. It hit the 30,000 mark in September, but tight supplies of semiconductor devices have hindered progress on about 10,000 locations.
Rakuten Mobile offers roaming through rival KDDI's network. It began accelerating the switch to its own network in October, in an attempt to cut fees paid to KDDI.
Rakuten Group reported a JPY 65.4 billion (approximately USD 574 million) net loss for the January-June period. Cutting back on roaming "is an extremely big milestone toward turning a profit", said executive vice-president Shunsuke Yazawa. The company executive also outlined plans to accelerate customer acquisition through setting up more retail locations.
Rakuten is installing small devices at restaurants and retailers to upgrade indoor reception and plans to have more than 30,000 in place by year-end.
