Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
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Rakuten Mobile and Rakuten Communications Platform Overview Azita Arvani, GM Rakuten Mobile Americas November 2020
Rakuten at a glance Rakuten is an internet and technology-powered group: diversified with 70+ businesses and 20,000+ employees across the globe Global gross $175B transaction volume in 2019 Germany France United States $11.6B Total annual revenue (2019) Canada France Luxembourg Japan United States Spain 1.4+B Members globally Taiwan United States 20k+ Employees across the globe United States 71+ Services and businesses 35 Countries/areas around the world 2
Technology Canvas for Future Transformation ENABLE EMPOWER ENRICH Industry Society Individual Experiences 5G Mobile Telemedicine Manufacturing Virtual Drone Smart Virtual Digital Smart Service Shopping Delivery Cities Travel Content Stadiums 3
Rakuten Mobile and Rakuten Communications Platform The Rakuten Ecosystem is uniquely positioned to build an entirely new digital platform with Rakuten Mobile telco platform mobile operator world’s first fully virtualized, world’s first fully virtualized, cloud-native, end-to-end cloud native Best mobile experience Enables telcos and enterprises for consumers easily build secure and open networks Japan Global Rakuten Mobile is the first customer of RCP 4
Rakuten Architecture is designed around Open Networks RAN HW&SW MEC OPERATIONS CORE OpenRAN OPEN COTS-BASED AUTOMATION OpenCORE ARCHITECTURE HW & SW MEC DESIGN & AI OPS INNOVATION Cloud Native, De-coupled, Standardized, open HW Optimal mix of edge and Pervasive automation and Innovation Partnership OpenRAN Architecture and SW frameworks central DCs & resources zero-touch operations w/ NEC to create OpenCORE Edge Data Centers Centralized Data Centers 4G LTE RCP AUTOMATOR RCP AUTOMATOR IP Transport IP Transport Fibre Front Haul FIBER Mid Haul FIBER vDU vDU vDU vDU CU-UP Fiber CU-CP vEPC vIMS Fiber Network 5G mmWave Internet RCP CLUSTER RCP CLUSTER SUB-6 RU 7
New customer behavior Rakuten Mobile goes beyond by delivering exceptional experience for data hungry customers Customers Data volume/sub Video performance RCS calls ratio > 1m 8.5 0.5 GB/ Day 2m videos 70% Mins Onboarded within 4 months 2X More Compared to 50% Of Traffic is Video and 2.5X More RCS Calls Other Operators Streaming than VoLTE 8
New way to operate Rakuten Mobile operates like no other existing telco in the world Cell Site deployment New NW Feature NW availability Engineer : Subscriber Mobile Service Ratio 8.5 Provisioning Deployed No 9s 3 MinsMins 4 Mins (for 5G) 6 Days 1 : 20,000 8.5 Mins (for 4G) Resilience Instead of days or Old thinking: Instead of 3 hours Instead of 6 months Instead of 1 : 1,000 months Telco-Grade (99.99999%) 9
Globally Recognized NW Performance 4G Availability Upload Speed Download Speed On-Network Time 98.6 18.9 46.9 89.3 98.5 86.6 % % Mbps Mbps % 74.4 % 86.3 8.8 % Mbps 29 % Mbps Rakuten Japan Global Rakuten Japan Rakuten Japan Tokyo Osaka Nagoya Mobile MNOs Mobile (On-Net) MNOs Mobile (On-Net) MNOs No. 2 in the World No. 1 Globally Speed is only 25% Increasing the time below competition spend on our network Foundation for 5G significantly network services Top NW performance despite having only 1/6 of our competitor’s spectrum holding Source: OpenSignal insights – 254,883 devices with 3,346,924,826 measurements *Data Collection Period: June 1 – August 29, 2020 10
Simplified Site Deployment Reducing Cost and Build Out Time Traditional Site Deployment Rakuten Simplified Site Deployment Integrated RRH + Antenna Power Board Rectifier & Battery Power Board GC DU BBU BBU Rectifier & Cable & Cabinet RRU Antenna Rectifier & Battery AAU Battery Jumper 11
Unique Modular Concrete Poles that are Simple and Cost Effective Cost Effective Concrete Pole 40% Ease of Installation 40% less cost compared to Deploy maximum no. of building top macro poles nationwide Complete Control Modular Ease of 5G Ready Access To site maintenance Minimum required space 12
Rakuten Mobile deployment A highly stable, demand elastic and future-proof telco platform in only two years Accelerate deployment 17,210 12,255 Original target Owner commitment 8,652 6,731 Construction complete On-air Original target 3,432 2019/9〜 2020/3 2020/9/1 2021/3 (Forecast) *As of H1 2020 13
Affordability Traditional Opex Capex 30% 40%
5G launch in Japan Launched 5G on September 30th 2020 Un-limit plan V (5G plan) Radio unit Radio unit Coverage Mobile Devices Same 5G NR 5G NR 6 2 new (mmWave cost (sub-6 RU) DRU) prefectures phones Tokyo, Kanagawa, As Un-limit plan (4G plan) 3.8Ghz, 32 32 TRx, 28 GHz, 128 x 128 Element, Rakuten Big, Rakuten Hand Saitama, Hokkaido, Osaka 70 dBM EIRP 51 dBm EiRP Antenna and Hyogo. 15
How did Rakuten Mobile approach 5G Rakuten Mobile had to re-define how an operator is designed and works for 5G Cloud Radio Automation Standardized COTS OpenRAN is the most Automation enables HW & Containers crucial component for much-needed make the difference industry disruption operational savings Collaboration Security Organization Enabling Open With Openness comes 5G needs a new way of Innovation is a must responsibility for top working and Security operating model 16
5G enabled fully containerized VoRAN Launched Rakuten Big, Sub6 and mmWave 5G network Rakuten 5G products Rakuten BIG 5G mmWave 5G sub-6 Radio RCP LTE LTE LTE SW SW SW Gues Gues Gues t OS t OS t OS 5G S W CPR VM VM VM I Hyperviser RCP Host OS Operation System Baseband Hardware & LTE SW Legacy Virtualized Stack Containerized stack Legacy custom-build hardware with oRAN compliant software deployed as VNF oRAN compliant software deployed as CNF proprietary software implementation (Virtual Network Function) on COTS hardware (Containerized Network Function) on RCP platform17
One of the World’s Largest HetNet OpenRAN Deployment URBAN SUBURBAN RURAL 4x4 4x4 2x2 2x2 2x2 2x2 + Wi-Fi* 2x2 + Wi-Fi 128x128 32x32 Split 7.2 Split 7.2 Split 2 Split 2 Split 2 Split 2 Split 2 Split 2 Split 7.2 Macro Mini Macro Small cell Enterprise Femto 5G NR Integrated HetNet Approach allows us to manage existing spectrum better 18
30% More Coverage per Site = 30% Less Sites 2 Transmit 2 Receive Other Operators Antennas Cable Loss B Radio Old School RRH/RU B Radio U 80W Total Power RRH Radio High Cable Loss / PIM 4 Transmit Radio Radio Radio 4 Receive Antennas Integrated Antenna & Radios 160W High Power RRH No Cable Loss No PIM (Passive Intermodulation) Fewer equipment in the site Such an advantage means we need 30% fewer sites to cover the country 19
Rakuten Communications Platform 20
We take OpenRAN Global with RCP Rakuten Communications Platform is behind our 5G Initiatives and we will provide it to operators globally next year INTELLIGENT • ADVANCED AUTOMATION Advanced & SECURE OSS BSS Analytics AI / ML FOR TOUCHLESS OPERATIONS OPERATIONS RAN CORE • 100% DISAGGREGATION NETWORK vRAN – 4G – vBBU vEPC v5GC IoT RMS SDN FROM HARDWARE FUNCTIONS vRCS vIMS uUC3 … • OPEN ARCHITECTURE vRAN – 5G – vDU/vCU • 100% COTS HARDWARE CLOUD UNIFIED TELECOM CLOUD • ELASTICITY WITH INFRA CONTAINERS TO SCALE AT STRUCTURE INFRASTRUCTURE COTS OPTICAL SWITCHING LOW COST At each capability layer of our Architecture, we design to deliver significant value and outcomes to our business 21
RCP is built on key secure operations principles Enabling us to embed security at every layer of the communications stack Trusted Transparency Zero Trust NIST Framework Clean Network Working with a trusted Conducting Trust Adopting the Providing secure end-to- supply chain and Assessment, applying Cybersecurity Framework end cloud-native network continuously verifying Trust Level Policy for to enhance our capability infrastructure with trusted the trust level of the each network zone, and to identify, prevent, detect, partners and establishing system – all physical, enforcing the Policy respond to cyber attacks processes to safeguard virtual, hardware and through automated and recover customer privacy and software components updates sensitive information We are recognized by the US Department of State as a 5G Clean Telecommunications company 22
CONFIDENTIAL – DRAFT FOR DISCUSSION 23
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