Value-Enhancing 5G Spectrum Allocations on the Way for KDDI, DoCoMo, Softbank and Rakuten

Japan 5G Spectrum Allocations In-Line With Expectations

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Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

Japan Telecom services / Thematic (Sector/Industry)

<p>As part of its next IT strategy announcement the Japan Cabinet office is proposing the use of 200K traffic lights to host 5G antenna.  In the context of a full 5G network deployment this does not signal a meaningful reduction in total deployment cost for the three incumbents or Rakuten but it does 1) highlight an increasing use of shared infrastructure in Japan;  2) lend confidence to incumbent claims that overall capex budgets won't rise as 5G is deployed and 3) potentially accelerate the timeline for 5G deployment. Government support for 5G is positive for all players and Rakuten, KDDI and Softbank, with smaller capex budgets should benefit more.</p>

As part of its next IT strategy announcement the Japan Cabinet office is proposing the use of 200K traffic lights to host 5G antenna.  In the context of a full 5G network deployment this does not signal a meaningful reduction in total deployment cost for the three incumbents or Rakuten but it does 1) highlight an increasing use of shared infrastructure in Japan;  2) lend confidence to incumbent claims that overall capex budgets won't rise as 5G is deployed and 3) potentially accelerate the timeline for 5G deployment. Government support for 5G is positive for all players and Rakuten, KDDI and Softbank, with smaller capex budgets should benefit more.

Japan 5G: Government Will Promote Use of Public Infrastructure to Speed Deployment