TOKYO –
Rakuten Mobile faces a brand new check of its community high quality after KDDI determined to cut back roaming assist from September 2026, ending entry to its community in areas the place Rakuten already has its personal base stations whereas persevering with service in mountainous and sparsely populated areas.
Rakuten Mobile entered Japan’s cell phone market in earnest in April 2020 as a latecomer competing with NTT Docomo, KDDI’s au and SoftBank.
Because its personal community was initially restricted, Rakuten relied on KDDI roaming to complement protection in areas the place development of its base stations had not saved tempo.
The association is because of expire in September 2026, and KDDI has determined to scale back the areas the place its community is made accessible to Rakuten.
Under the brand new coverage, roaming will usually be terminated in areas the place Rakuten Mobile already operates its personal base stations.
KDDI President Hiromichi Matsuda has mentioned visitors from Rakuten customers has grown greater than anticipated, growing the load on KDDI’s community and doubtlessly affecting the standard of providers offered to its personal clients.
Rakuten Mobile has expanded quickly and now has greater than 10 million cellular traces.
Its progress has additionally drawn criticism from rivals that say the corporate has prioritized subscriber acquisition whereas counting on one other operator’s community quite than investing sufficiently in its personal infrastructure.
SoftBank beforehand criticized Rakuten after it mentioned it could keep away from elevating costs, arguing that different carriers have been having to mirror the price of constructing and sustaining intensive base station networks of their pricing.
The impact of KDDI’s roaming discount is prone to fluctuate by space.
KDDI publishes a map displaying the place it gives roaming service to Rakuten Mobile. Information up to date on June 1, 2026, confirmed protection in plenty of cities and cities outdoors Tokyo’s 23 wards.
Roaming areas additionally included places the place giant numbers of individuals collect, together with round Maihama Station in Urayasu, Chiba Prefecture, close to Tokyo Disney Resort, and elements of the Minato Mirai district in Yokohama.
Not all such areas are anticipated to lose roaming instantly, however KDDI’s protection is anticipated to shrink progressively.
Ministry of Internal Affairs and Communications knowledge confirmed a considerable hole in community infrastructure as of the tip of March 2025.
NTT Docomo, KDDI and SoftBank every had roughly 300,000 to 400,000 base stations, in contrast with simply over 100,000 for Rakuten Mobile.
Rakuten says roaming shall be ended solely in areas the place its personal community can present adequate protection.
Rakuten Group Chairman and CEO Hiroshi Mikitani mentioned in a put up on X that the corporate would proceed offering providers clients can use with confidence.
Even so, any deterioration in connectivity in crowded areas may shortly injury Rakuten Mobile’s popularity.
For cellular operators, perceptions {that a} community is tough to hook up with will be notably damaging as a result of poor connectivity is a significant cause clients swap carriers.
Rakuten plans to spend 200 billion yen this yr on base station development as it really works to strengthen protection.
KDDI, in the meantime, has robust incentives to guard the efficiency of its personal community.
In its April-June 2026 outcomes, the corporate mentioned restructuring efforts in its cellular enterprise have been producing outcomes.
KDDI had 33.3 million smartphone subscriptions on the finish of June 2026, up 390,000 from a yr earlier.
Its churn charge fell by 0.06 share level to 1.17%.
The firm has been attracting customers by lower-priced manufacturers corresponding to UQ cellular and povo after which encouraging some clients to maneuver to the principle au model, serving to construct longer-term relationships.
Allowing Rakuten visitors to put higher pressure on KDDI’s community may danger undermining that technique if au or UQ cellular clients expertise poorer service.
KDDI was initially created partially to problem NTT’s dominance in Japan’s telecommunications market, and it initially had an incentive to assist Rakuten as one other firm looking for to extend competitors.
However, with Rakuten Mobile’s subscriber base now exceeding 10 million traces, the corporate has more and more develop into a direct rival quite than a fledgling entrant.
Rakuten Group itself has solely just lately begun displaying indicators of a monetary restoration after years of heavy spending on its cellular enterprise.
Its consolidated outcomes for the primary half by June 2026 confirmed an working revenue for the primary time in seven years, since 2019.
The cellular enterprise had been a significant cause for the group’s extended working losses due to the heavy funding required to construct its community.
If clients start to view Rakuten Mobile as more durable to make use of due to decreased roaming protection, the corporate may very well be compelled to speed up funding additional, placing renewed strain on earnings.
The problem may additionally prolong past the cellular enterprise as a result of Rakuten has constructed a broad financial ecosystem spanning providers corresponding to banking, securities, e-commerce and telecommunications.
If dissatisfaction with Rakuten Mobile causes clients to depart the service, it may additionally weaken the corporate’s skill to retain customers throughout the broader Rakuten ecosystem.
Source: Kyodo