Japan on Infrastructure Sharing Mission, Driven by 5G

Japan has started exploring different approaches for Infrastructure Sharing. Earlier I wrote about Infrastructure Sharing over Electric Power Infrastructure. TEPCO (Tokyo Electric Power COmpany) Power Grid, Incorporated, KDDI CORPORATION, SoftBank Corp. and Rakuten Mobile Network, Inc. announced that the four companies have reached an agreement to collaborate on trials of base station site and equipment sharing utilizing TEPCO PG’s utility poles and other electric power infrastructure, ahead of the introduction of 5th generation mobile communications systems (5G) in Japan. The trials are due to be begin in the first half of FY2019. 

So Japanese Networks are:

* Sharing Network over Electric Power Infrastructure - https://t.co/j4GEUvJwba

* Sharing Traffic Signals for 5G Relay Devices - https://t.co/Bs63lqOB8u

and now this 🤔 (@zahidtg )

— 3G4G (@3g4gUK) July 4, 2019

We have written earlier about the Japanese Market, the new entrant Rakuten that is transitioning from MVNO to MNO and 5G Spectrum Allocation. After the 5G Spectrum allocations were over, last month, Japanese Cabinet approved a project to install 5G wireless relay devices, to support the provision of 5G services, on traffic signals across the country. The government is allowing 208,000 traffic signals to be used to deploy the new 5G equipment, expecting to the network installation to be complete by the end of March 2026. In addition, the government also plans to upgrade the traffic lights with communication functions that allow them to collect and share more traffic data.

Regarding the relays, I am assuming something similar to Type 1a/1b, see here. NTT Docomo has been trying our a lot of innovation including small cells (probably relay) on traffic lights, reflectors and even mobile relay node. I am sure some of these will make it into practice.

This week, KDDI and SoftBank announced they have reached an agreement on the mutual use of their base station assets to jointly promote the rapid build-out of 5G networks in Japan's rural areas. According to the press release:

Many issues lie ahead for Japanese society, including an aging population, a shrinking workforce, depopulation in rural areas, deteriorating infrastructure and natural disasters of increased intensity. To address these issues, the Japanese government is advocating Society 5.0 and promoting initiatives to achieve it. With the spread of a super-smart society under Society 5.0, large volumes of data will need to be shared to utilize IoT, big data and AI, and a rapid build-out of 5G networks is expected to help facilitate this. In particular, 5G networks are expected to help resolve Japan's regional issues by enabling remote monitoring and operation through the transmission of high-definition images. Furthermore, 5G networks can help increase productivity by facilitating data gathering and analysis, which could contribute to the revitalization of regional industries, including local companies and startups.

Since 5G networks use the 28GHz and 3.7GHz high-frequency bands, many base stations need to be installed nationwide, and this requires long-term construction and large investment commitments. Accordingly, to quickly provide services that meet Japan's regional revitalization needs, more than ever before, carriers need to promote mutual infrastructure sharing to efficiently construct a network of 5G base stations. To accelerate the build-out of 5G networks in rural areas, KDDI and SoftBank will explore options with a view to establishing a joint construction management company that would facilitate construction designs and manage construction work to efficiently utilize the base station assets of both companies.

As a first step, both companies will establish a preparatory office, and starting this fall, conduct joint trials in Asahikawa City in Hokkaido, Narita City in Chiba Prefecture and Fukuyama City in Hiroshima Prefecture. In addition to streamlining processes from design to construction management stages, the trials will be used to verify the effects of 5G network quality improvements and shortened construction periods in rural areas.

KDDI has also be testing relay nodes (small cells) in rural areas, camouflaging it to not spoil the natural beauty of the area. They can very well be sharing this with Softbank.

Many countries are looking towards Japan to learn from the outcome of these infrastructure sharing schemes. Hopefully we will learn more about them in the coming years, if not months.


Related Posts:

• Tutorial: What is meant by Infrastructure in a Telecoms Network?
• Mobile Network Infrastructure Sharing in Japan over Electric Power Infrastructure
• Quick tutorial on Mobile Network Sharing Options
• Network Sharing is becoming more relevant with 5G
• Japan allocates 5G Spectrum in 3.7GHz, 4.5GHz and 28GHz bands
• Rakuten Japan: Transitioning from MVNO to MNO later in 2019
• Japan Mobile Subscribers and MNO Market Share

Japan allocates 5G Spectrum in 3.7GHz, 4.5GHz and 28GHz bands

The Japanese Ministry of Internal Affairs and Communications (MIC) has announced the results of 5G spectrum allocation in Japan. The press release (in Japanese) is available here. An accompanying presentation (in Japanese too) is available here.

According to TeleGeography:

The MIC also published on the ministry website its approvals relating to 5G BTS deployments for all four companies. Based on a report from the Radio Frequency Control Council, 5G frequency authorisations are as follows:

NTT DOCOMO: 3.6GHz-3.7GHz, 4.5GHz-4.6GHz and 27.4GHz-27.8GHz

KDDI: 3.7GHz-3.8GHz, 4.0GHz-4.1GHz and 27.8GHz-28.2GHz

Softbank: 3.9GHz-4.0GHz and 29.1GHz-29.5GHz

Rakuten Mobile: 3.8GHz-3.9GHz and 27.0GHz-27.4GHz.

The MIC’s conditions will likely require the four MNOs to balance sizeable investment programmes against the need to remain profitable, and with new competition looming in the shape of Rakuten Mobile – which is set to kick off its fledgling 4G network this October, targeting 15 million subscribers in the medium-term – price competition is expected to intensify.

All four firms aim to commercialise 5G services in 2020, with KDDI and Softbank pencilling in launches in March and Rakuten in June 2020, and taken together the big four will invest JPY1.6 trillion (USD14.4 billion) in the five-year deployment phase, of which at least JPY795 billion is being spent by DOCOMO, JPY466 billion from KDDI, JPY206 billion (Softbank) and JPY194 billion (Rakuten).

This is a big win for Rakuten, Japan's newest mobile operator and their CEO H. Mickey Mikitani was quick to announce this win on Twitter.

5G radio spectrum allocated today: We received 100 MHz in the 3.7 GHz frequency band, and 400 MHz in the 28 GHz frequency band. Fantastic! pic.twitter.com/d0oYaQArL0

— H. Mickey Mikitani (@hmikitani_e) April 10, 2019

It was also interesting to see NTT Docomo get the 4.5 GHz band. They are pioneers of this band and have worked with NEC, Nokia, Huawei, etc. on trials in this band. They have also conducted URLLC tests in 4.5 GHz band. An NEC press release back in January talked about providing 5G base stations to NTT Docomo supporting 4.5GHz and 28GHz bands.

 

NEC was showing its Open RAN (O-RAN) enabled Radio Unit (RU) at MWC 2019 which are planned to be used with NTT Docomo 5G base staations.

NTT Docomo 5G plans can be seen in their MWC 2019 5G presentation that was being shown on their booth and is also available online here.

In a report by Reuters:

One of the conditions from the telecoms ministry was to “take sufficient cybersecurity measures including responding to supply chain risk”.

The condition effectively prevents the telecom providers from using network equipment from China’s Huawei Technologies and ZTE Corp, and follows a de facto ban implemented last year on Japanese government purchases from the manufacturers.

According to Mobile World Live:

Japanese operators are required to install 5G base stations in half of 4,500 blocks, or districts, established by the ministry within five years, Nikkei Asian Review said. Docomo and KDDI both target 90 per cent coverage by 2024; SoftBank and Rakuten are aiming for 64 per cent and 56 per cent respectively.

All four operators are targeting the launch of  mobile 5G services sometime in 2020. In December 2018 they stated they have no plans to deploy gear from Huawei and ZTE in the networks, following a ban on the use of Chinese telecoms equipment by government agencies in the country.

Docomo, KDDI and SoftBank are also working toward launching limited commercial 5G services in 2019, with pilots due to take place at the Rugby World Cup.

Related posts:

• Current IMT Spectrum Allocation in Japan
• Rakuten Japan: Transitioning from MVNO to MNO later in 2019
• Japan Mobile Subscribers and MNO Market Share

Current IMT Spectrum Allocation in Japan

The chart below shows the current spectrum allocation in Japan (source)

As can be seen, Softbank has the maximum spectrum, 250 MHz followed by NTT Docomo and KDDI with 240 MHz each. Newcomer Rakuten has 2x20 or 40 MHz abailable in Band 3 (1800 MHz).

New spectrum for 5G has not yet been auctioned but will happen this year. It was expected to be auctioned last year. Below slide shows the spectrum under consideration.

Related posts:

• Japan Mobile Subscribers and MNO Market Share
• Rakuten Japan: Transitioning from MVNO to MNO later in 2019

Rakuten Japan: Transitioning from MVNO to MNO later in 2019

Rakuten is a Japanese giant with a turnover of over $139 billion last year. Along with all the other e-commerce and internet business, it is also an MVNO.

According to Smart Karma:

In the latest data, MVNOs (mobile virtual network operators) have reached 7.0% market share of Japan’s main 3G and LTE (4G) services with over 12m subscribers. Government support remains robust for the MVNOs. Mr. Suga, the Chief Cabinet Secretary, has suggested that MVNOs, in all forms, should expand to 50% of the market in the future. 

As Rakuten prepares for its full MNO (mobile network operator) service launch later this year, the Rakuten MVNO services continues to execute well, taking market share and building a formidable foundation of subscribers. Rakuten is now Japan’s largest MVNO by customer numbers. We expect Rakuten will struggle to make a reasonable return on its MNO on a standalone basis, but it may strengthen the company’s overall ecosystem and create enough synergies to add positive value to the group.

Back in January, Rakuten Blog talked about building the world's first end-to-end cloud-native mobile network:

During Rakuten Technology Conference 2018 in Tokyo last October, Rakuten Mobile Network Chief Technology Officer (CTO) Tareq Amin explained for the first time the revolutionary approach that his team is taking to build Japan’s fourth major network.
...

Since 2014, consumers in Japan have enjoyed affordable mobile phone service through Rakuten Mobile. The service has grown to become Japan’s biggest MVNO (mobile virtual network operator), enjoying particular success attracting young people with its low fees and appealing loyalty point incentives. As an MVNO, however, Rakuten Mobile utilizes the infrastructure of other major network carriers to deliver its service – limiting its ability to launch technical innovation and provide new services to customers.

As the new mobile network will be required to provide coverage across the entire country, Rakuten has mobilized partners and its employee base to rapidly secure sites to build out the radio access network, as well as signing an agreement with KDDI Corporation to provide roaming services during its own infrastructure construction period. Nevertheless, there has been speculation about the ambitious schedule and budget Rakuten has proposed for rolling out its plans.

“How could you do this? It is not possible to build a network in only 12 months without a significant capex investment,” posed Amin during his presentation. “It is possible because we are deploying a very different architecture and leveraging Rakuten IT skills as a leading tech company.”
...

Rakuten has also been making headlines in Japan with its forays into 5G innovation, in partnership with firms such as Nokia, Altiostar, Cisco, Mavenir, Intel, Qualcomm, Quanta and NEC. According to Amin, deploying “true” 5G is an integral part of Rakuten’s mobile journey.

“What does 5G transformation for Rakuten really look like?” Amin asked the audience at the Conference. “If you look at any traditional operator, both inside and outside of Japan, it’s actually a very unnatural process to upgrade to 5G. They have to completely virtualize their infrastructure, they have to deploy new core architecture, they have to deploy new radio access. In Rakuten’s world, the entire core technology, including our Radio Access Network, is fully ready for 5G.”

The fact that Rakuten, unlike existing telecommunication companies, has no outdated and legacy infrastructure to maintain is a significant advantage. “We don’t have to worry about building and transforming our network from 3G or 4G to 5G. From day zero, Rakuten network is 5G ready.

At the same time, Amin doesn’t consider the 5G services that other telcos are launching to be “true” 5G. “If you truly want to offer functionalities and capabilities like network slicing into this new architecture, you must deploy standalone 5G core, which Rakuten is doing.”

This is a very bold vision but is supported by many different legacy and new vendors bringing lot of experience and innovation into the whole process. The following video from Cisco is showing how the experience and innovation is working together at Rauten


Telecom TV points out:

As if a brand new cloud-native 5G-ready network wasn’t sufficiently exciting on its own, there’s another key angle to the Rakuten story. What makes it different is that the company has a strong services and applications heritage (over 70 services to date, in use by over 100 million registered members). This is not a mobile network operator that will then create and launch applications – this is an established services and apps company that is launching a mobile network. It’s an important distinction, and one which could – if successful – lead to other similar new entrants and business models in the decade ahead.
...

The RAN will initially be 4G and Wi-Fi, with the addition of 5G planned for early 2020, subject to government licensing approval. As well as consumer mobile, Rakuten also plans to offer 5G FWA and NB-IoT.

The Mobile Network has a lot of insights on the Rakuten Network here and here.

• The virtual radio access network for Rakuten’s brand new mobile network in Japan will be provided by Altiostar. The vRAN company, which has just taken a strategic investment from the operator, will provide all the virtual Central and Distributed units (vCUs, vDUs) within the RAN.
• Nokia mentions its  role as “Turnkey” deployment partner. It says it will provide deployment and integration of the new radio network leveraging a ‘zero footprint’ site approach with remote radio heads connected to cloud RAN software on the edge cloud. That cloud RAN software, we know now, will be Altiostar’s. Nokia will be providing its AirScale RRHs as well as some vIMS functions and its AirGile core.
• Nokia is supplying the remote radio units, bolting these on via a specially designed coupling to antennas from Korean antenna supplier KMW Communications.
• Intel’s release confirmed the RAN-core software providers, stating, “The Rakuten network uses a virtualised radio access network running on Intel Xeon processor-based servers from Quanta, support radio access technology from Altiostar and core network software from Cisco, providing a network that is fully virtualised from RAN to core.”
• Cisco is the cloud core and NFVi provider. The hardware, which comes in just four server variants, is all from Taiwanese provider Quanta Cloud Technology

Here is an official video from Rakuten on their mobile network strategy and details of launch plans



Finally, I caught up with my ex-colleague and a big supporter of 3G4G blogs, Rahul Atri at the Rakuten booth. I had to add his picture here 😉

Related reading on this topic:

• Mobile World Live: Mickey Mikitani, Founder, CEO & Chairman, Rakuten presents in Keynote 7: The Next Generation.
• Telecom TV: How Rakuten stole MWC’s thunder
• The Mobile Network: Altiostar gets big RAN win in Rakuten’s virtual network showcase
• The Mobile Network: Rakuten makes a real racket about its virtual network at MWC
• Rakuten Press Release: Rakuten Launches First Real-World End-to-End Tests in a Fully Virtualized Cloud-Native Mobile Network
• Disruptive Asia: Rakuten shows MWC how to build a 5G network, you’re welcome

Further Reading:

• Operator Watch Blog: Current IMT Spectrum Allocation in Japan
• Operator Watch Blog: Japan Mobile Subscribers and MNO Market Share
• The 3G4G Blog: A quick tutorial on Open RAN, vRAN & White Box RAN