{"id":2785,"date":"2020-08-31T12:18:36","date_gmt":"2020-08-31T12:18:36","guid":{"rendered":"https:\/\/www.5gworldpro.com\/?p=2785"},"modified":"2020-08-31T12:18:36","modified_gmt":"2020-08-31T12:18:36","slug":"rakuten-reduces-capex-by-sourcing-directly-from-component-vendors","status":"publish","type":"post","link":"https:\/\/new.5gworldpro.com\/?p=2785","title":{"rendered":"Rakuten reduces Capex by sourcing directly from component vendors"},"content":{"rendered":"<p>Rakuten Mobile CTO Tareq Amin is confirming that his team has built mmWave 5G radio access network infrastructure systems that cost 60% less than \u2018traditional\u2019 vendor by sourcing the required technology direct from the component manufacturers and building it together as part of an open RAN rollout.<\/p>\n<p>Rakuten launched its 4G services in April this year, and now has more than 1 million \u201capplications\u201d for the service: It is still building out its 4G network and is expecting to have 70% population coverage by Q3 \u00a02021. According to Tareq Amin, that network, has been built at a capex level about 35% lower compared with the expected cost using \u201ctraditional\u201d network systems.<\/p>\n<p>Meantime, \u00a0Tareq Amin said that they are building their 5G network and are now planning to launch services using that infrastructure in early October.<\/p>\n<p>And it\u2019s here that Amin believes Rakuten is achieving significant relative cost savings: He says the projected capex saving, compared to a traditional build, for the 5G access network is about 55%.<\/p>\n<p>How has that been achieved? By cutting out the supply chain middlemen.<\/p>\n<p>CTO stated that \u201cFor 5G we decided that rather than working through the traditional [supply chain] channels, we decided to work directly with component vendors. When you work on a component vendor architecture, the cost optimization you can achieve is just incredible. So just imagine that the end destination for you is to reach a factory\u2026 What happens if you take [out] the middleman? The discovery we had is just unbelievable\u2026 it\u2019s unbelievable how much inflation there is on hardware\u201d.<\/p>\n<p>Amin said that the sub-6 GHz massive MIMO 32T\/32R (transmit\/receive) antenna panels \u201care exactly 50% the cost of traditional OEM infrastructure,\u201d but for the mmWave access systems, \u201chonestly speaking, I believe it is even north of 60% cheaper than [traditional] mmWave [technology]\u2026 I think we have really knocked it out of the park\u201d by working directly with Qualcomm as the component supplier.<\/p>\n<p>Of course, this means having to take the multiple elements from multiple vendors and integrate them, a major task that is one of the main downsides of disaggregated networks, and rakuten will have to become the glue among all these vendors.\u201d<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rakuten Mobile CTO Tareq Amin is confirming that his team has built mmWave 5G radio access network infrastructure systems that cost 60% less than \u2018traditional\u2019 vendor by sourcing the required technology direct from the component manufacturers and building it together as part of an open RAN rollout. Rakuten launched its 4G services in April this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[343,191,338],"class_list":{"0":"post-2785","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-5g-knowledge","8":"tag-capex","9":"tag-open-ran","10":"tag-rakuten"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rakuten reduces Capex by sourcing directly from component vendors - E-Commerce Revolution<\/title>\n<meta name=\"description\" content=\"Rakuten Mobile CTO Tareq Amin is confirming that his team has built mmWave 5G radio access network infrastructure systems that cost 60%\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/new.5gworldpro.com\/?p=2785\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rakuten reduces Capex by sourcing directly from component vendors\" \/>\n<meta property=\"og:description\" content=\"Rakuten Mobile CTO Tareq Amin is confirming that his team has built mmWave 5G radio access network infrastructure systems that cost 60%\" \/>\n<meta property=\"og:url\" content=\"https:\/\/new.5gworldpro.com\/?p=2785\" \/>\n<meta property=\"og:site_name\" content=\"E-Commerce Revolution\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-31T12:18:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/new.5gworldpro.com\/wp-content\/uploads\/2020\/08\/rakuten-logo.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1525\" \/>\n\t<meta property=\"og:image:height\" content=\"678\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/new.5gworldpro.com\/?p=2785\",\"url\":\"https:\/\/new.5gworldpro.com\/?p=2785\",\"name\":\"Rakuten reduces Capex by sourcing directly from component vendors - 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