Ecommerce Giant Rakuten to Break up Japan’s 3 Part Oligopoly

telecommunications companies on the moveThe government is involved in the biggest Japan telecommunications shake-up ever. Until Rakuten proposed its plan to become an MNO in 2018, NTT Docomo (with over 40 million users), KDDI (48 million users) and SoftBank (with 39 million users), the Big 3 held what is sometimes called an organized oligopoly. How has and will Rakuten help to break up this “syndicate?”

Rakuten’s Rakuten Moble Network already has invested over 18 million USD to a pot that could total as much as 5.6 million to fully launch.

Other utilities’ companies that have the potential to assist Rakuten Mobile Network to achieve a complete Japan nation coverage include:

Chugoku Electric Power Company (CEPCO)
Chubu Electric Power (Chuden)
Hokuriku Electric Power Company (Hokuden)
Hokkaido Electric Power Company (HEPCO)
Kyushu Electric Power (Kyuden)
Okinawa Electric Power Company (Okiden)
Tokyo Electric Power Company (TEPCO)
Tohoku Electric Power (Tohokuden)
Shikoku Electric Power Company (Yonden)

According to Lumen Learning, “firms in an oligopoly may collude to set a price or output level for a market in order to maximize industry profits. … Collusive arrangements are generally illegal. Moreover, it is difficult for firms to coordinate actions, and there is a threat that firms may defect and undermine the others in the arrangement.”

And … according to Statista … “During the most recently reported period [late 2017], the number of members who had logged in at least once after registration amounted to approximately 95.2 million.’

That’s a good start to pull from as potential cellular subscribers. The Japan ministry of internal affairs and communications has approved of Rakutan’s plan.

Of course, DIDx is ready to assist Rakuten Mobile Network in making available local DID numbers of 130 nations for its customers. Such a move will be one more key resource to cutting costs, raising sales, competing better with the Big 3 and retaining customers.

Read recent news about KDDI, Softbank and NTT Docomo.