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Rakuten, Inc. (RAK.F)

Frankfurt - Frankfurt Delayed Price. Currency in EUR
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9.72-0.17 (-1.73%)
As of 2:15PM CEST. Market open.
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Previous Close9.89
Open9.61
Bid9.61 x 100000
Ask0.00 x 100000
Day's Range9.61 - 9.72
52 Week Range5.15 - 9.72
Volume1,059
Avg. Volume2,670
Market Cap13.015B
Beta (5Y Monthly)1.11
PE Ratio (TTM)9.99
EPS (TTM)0.97
Earnings DateN/A
Forward Dividend & Yield0.04 (0.40%)
Ex-Dividend DateDec. 27, 2019
1y Target EstN/A
  • Huawei Ban Spurs New Competition for Ericsson, Nokia
    Bloomberg

    Huawei Ban Spurs New Competition for Ericsson, Nokia

    (Bloomberg) -- The U.S. ban on Huawei Technologies Co. was supposed to hand leadership of the lucrative market for wireless base stations to Ericsson AB and Nokia Oyj. It’s not working out that way.The crackdown on China’s largest technology company has given startups such as Altiostar Networks Inc. and new entrants including Qualcomm Inc. a rare opportunity to grab a slice of the $35 billion the telecom industry spends each year on this crucial part of mobile phone networks.“This could break up that tech vendor lock-in that’s been around for decades,” said Andre Fuetsch, chief technology officer of network services at AT&T Inc., the third largest U.S. wireless carrier. “It’s about how do you create a much more competitive, innovative ecosystem.”Base stations are the heart of cellular networks, powering millions of antennas that perch on cell towers and city rooftops all over the world. Until recently, these boxes were a proprietary combination of processors and software that had to be purchased all at once. Huawei, Ericsson and Nokia account for three quarters of this market, which is worth as much as $35 billion a year, according to researcher Dell’Oro Group.Open radio access network, or O-RAN, changes this by creating an open standard for base station design and ensuring all the software and components work well together -- no matter who is supplying the ingredients.This is a potentially radical shift. When telecom giants such as AT&T and China Mobile Ltd. want to expand their network they usually have to call their existing supplier and order more of the same because a box from Nokia won’t work with one from Ericsson. The new technology lets wireless carriers mix and match more easily.The initiative also means that new suppliers can succeed by focusing on one or two components, or a single piece of software, rather than spending lots of time and money building a whole base station from the ground up.O-RAN gear has been used sparingly since an industry alliance was formed to promote the technology in 2018. But when the U.S. toughened its stance against Huawei last year and encouraged other countries to crack down, interest in O-RAN adoption increased. The Chinese tech giant is a low-cost provider. Now it’s unavailable in some markets, carriers are more willing to look at alternative suppliers embracing the more flexible O-RAN approach.“Increased geopolitical uncertainty is helping them to get an invite to the table they would not normally have had,” Dell’Oro Group analyst Stefan Pongratz said. “Multiple vendors, not just in Europe but across the world, are basically reassessing their exposure to Huawei.”How Huawei Landed at the Center of Global Tech Tussle: QuickTakeOpen standard base stations will generate sales of about $5 billion in the next five years, more than originally predicted, according to Dell’Oro.Ericsson questions the performance and cost-efficiency of current O-RAN offerings. But the telecom companies, who decide where the money is spent, aren’t being shy about telling incumbent providers to get on board or risk being left behind.“We’ve been candid with them: This is the architecture that the operator community is pursuing,” said Adam Koeppe, who oversees technology strategy, architecture and planning at Verizon Communications Inc., the biggest U.S. wireless carrier.The list of companies vying to fill the gap left by Huawei is a mixture of some of the oldest names in technology and newcomers. Qualcomm, Intel Corp., Hewlett Packard Enterprise, Dell Technologies Inc., Cisco Systems Inc., Fujitsu Ltd. and NEC Corp. are offering various parts of the new base station technology. Startups such as Altiostar, Airspan Networks and Mavenir Systems are trying to carve out niches, too.O-RAN proponents point to the success of Rakuten Inc., a Japanese e-commerce provider that has used the technology to break into mobile phone services. The company began 4G wireless service in April and is upgrading to 5G now, using O-RAN suppliers including NEC, Qualcomm, Intel, Altiostar and Airspan. Rakuten said using this more open approach has cut capital expenditure by 40% and reduced operating costs 30%.Dish Network Corp. is building a 5G wireless network in the U.S. with help from Altiostar. New projects like this are great, but the real opportunity is with operators that are shifting their existing networks to O-RAN, according to Thierry Maupilé, Altiostar’s executive vice president of strategy and product management. The Tewksbury, Massachusetts-based company has raised more than $300 million from investors such as Rakuten, Qualcomm and Cisco.Why 5G Mobile Is Arriving With a Subplot of Espionage: QuickTakeO-RAN is part of a broader push to make all kinds of computer networks more flexible and easy to control. By standardizing hardware and using more software in centralized data centers, companies can run networks more cheaply, while fixing and upgrading them more easily. 5G will need this flexibility to work well.For AT&T, the new approach has already started to help. The company has introduced Samsung equipment based on O-RAN in areas where it had previously been limited to Ericsson gear, AT&T’s Fuetsch said.Nokia expects to have a full range of O-RAN offerings available in 2021. Some of the final standards aren’t yet set and they need to be completed and tested which will take time, according to Sandro Tavares, global head of marketing.“O-RAN is supported by more than 20 major operators around the world, so it is pretty clear that there is a strong push for it to happen,” he said. “This is a big move for our industry, and it is clear for the main players that we should not be cutting corners in this process.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Mercari Battles to be Profitable Leader in Japan Mobile Payments
    Bloomberg

    Mercari Battles to be Profitable Leader in Japan Mobile Payments

    (Bloomberg) -- Mercari Inc. wants to become the top provider of mobile payments in Japan even as its biggest rivals join forces, but that ambition is second to making the business profitable.The company’s immediate focus is on improving profitability and expanding the lineup of merchants that accept payments using its Merpay service, founder and Chief Executive Officer Shintaro Yamada said in an interview. Mercari, whose second-hand market app is used by over 17 million people each month in Japan, is in no rush to compete for users with Line Corp. and SoftBank Group Corp.-backed PayPay, Yamada said.Mobile payment competition is heating up in Japan, where the government has been trying to reduce the dominance of banknotes and coins. Line, the operator of Japan’s biggest messaging service, and e-commerce giant Rakuten Inc. had an early start in payments, followed by PayPay and then Mercari. PayPay -- backed by SoftBank, Yahoo Japan and India’s Paytm -- took the lead by sparking a shopping frenzy with 10 billion yen ($95 million) in rebates on purchases. Now SoftBank is looking to combine Yahoo Japan with Line, while Mercari has partnered with NTT Docomo Inc., the country’s dominant wireless carrier with its own payment business.“This doesn’t have to be a winner-takes-all market. There is no reason why it can’t be more like credit cards, where no one company controls it all,” Yamada said. “But if we are talking end-game, eventually, we want to beat the current No. 1 -- PayPay.”Read more: Digital Money Thefts Deal Setback to Japan’s Cashless DrivePayPay counts over 30 million registered customers and will soon gain access to 84 million Japanese users on Line’s messaging service. Merpay, launched in February 2019, has more than 7 million monthly active users and is accepted at more than 1.6 million stores. While Mercari’s user base is smaller, it has an advantage in payments because many of its customers already hold a cash balance as the result of selling goods on its app. The company, which reported a 22.8 billion yen loss for the year ended June, has said it aims to make Merpay profitable after the year ending June 2021.“We have the beginnings of a business that can be tremendously profitable in the future,” Yamada said. “For now, instead of expanding our user base, we are focusing on increasing profitability and synergies with the main business.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Telefonica partners with Japan's Rakuten to develop open 5G network
    Reuters

    Telefonica partners with Japan's Rakuten to develop open 5G network

    Spain's Telefonica has signed a pact with Japan's Rakuten to develop a 5G radio network system that uses an open platform and artificial intelligence, the companies said on Wednesday. The Japanese firm has become the first mobile operator to deploy a network based on a technology called Open Radio Access Network (RAN) that uses software to run network functions on the cloud, which requires less physical equipment. Rakuten plans to launch 5G services in Japan later this month, Rakuten Mobile's Chief Technology Officer Tareq Amin said on a call with journalists, after it was forced to delay the introduction by months due to disruption from the coronavirus outbreak.