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
Rakuten Mobile and
Rakuten Communications Platform
Overview

Azita Arvani, GM Rakuten Mobile Americas
November 2020
Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
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
Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
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 Overview - Azita Arvani, GM Rakuten Mobile Americas
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 Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
Infrastructure Principles Must Co-Exist

                         Agility

              Security         Affordability
Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
World’s First
   Fully Virtualized
New Generation Network

     April 8, 2020
   Full-Scale Launch
Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
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
Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
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
Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
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
Rakuten Mobile and Rakuten Communications Platform Overview - Azita Arvani, GM Rakuten Mobile Americas
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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