Digital Infrastructure (Fibre, Telecom Towers, Data Centres, Submarine Cables)
Telecom Tower Market Analysis and Forecast
Thematics / Opportunities relating to 5G, M&A and e-Commerce
Telco M&A Transaction Database
Japan Telecoms Industry Report at a Glance
Globally, the telecommunications sector is proving to be a core and essential infrastructure service to national economies, with data infrastructure becoming critical in a connected world and will likely increasingly attract a new class of investors such as large infrastructure funds. The publisher expects the Japanese telecommunications industry to remain steady thanks to the defensiveness nature of the industry, amid the political uncertainties and an uncertain economic outlook due to rising inflation. The Japanese telecommunications market is the third-largest market in the world by revenue (USD138 billion) with three large fixed and mobile network operators that invested heavily in towers and fibre infrastructure over the past two decades despite an overall market underpinned by low economic and population growth. Growing mobile phone penetration and high fixed broadband take-up among households will fuel future growth over the next five years. Following the market expansion over the last 5 years, the publisher forecasts subdued revenue growth growing to 2028, the diminishing impact of declining legacy voice and SMS revenue, Rakuten market entry and population decline. The strategic and economic competition between Japan and China is at the centre of advanced technology competition and the future of global data and communications. For most developed countries in the region, gaining strategic and economic power depends heavily on having technological ascendancy, especially in data and communications. Capex Investments
The Capex from Japanese operators is cyclical with mobile rollout leading to investments in line with the operators' top-line growth. Capex investments peaked in 2021 while all three operators built their respective 5G mobile networks. Capex will continue growing from 2024 through to 2028, as mobile operators invest in 5G.Japan sees 5G as the backbone of a wide range of technological advances including autonomous vehicles, smart cities and Internet of Things.All three mobile operators launched 5G services in March 2020.The Capex to GDP ratio will grow slighly during the forecast peior to 2028. The analyst projects an increase in Capex spend throughout 2022 alone by installing more 5G base stations across all cities, ramping up Japan's 5G rollout nationwide and consolidating its 5G network leadership in terms of subscribers and availability in the country. Operator Profiles
The Japanese three-player mobile market is a remarkably stable market, however it is about to be rocked by fourth market entrant - Rakuten Mobile - looking tofollow the steps of successful new entrants launch such as Free in France and Reliance Jio in India. Rakuten has set an ambitious target of being the first cloud-native mobile network. Between 2015 and 2021, both NTT lost revenue and EBITDA share to KDDI and Softbank over the last six years, Softbank lost some EBITDA share while cost reduction measures started to flow in 2019 with improving EBITDA and cash flow. Mobile Subscribers and Revenue
Average annual mobile revenue growth was lower (1.5%) than mobile service subscriptions growth (4.6%) during the period 2014-2019, highlighting the structural challenges faced by mobile operators. Declining voice & SMS revenue only partially offset by wireless data monetisation is putting pressure on ARPU, compounded by bundling discounts to stem churn. IoT connections is a major growth driver for mobile operators, a slowdown in mobile subscriptions growth will put long term pressure, dialling up competition for the three mobile operators fighting for fewer new customers. According to our benchmark study of mobile data pricing, Japan had among the biggest cost reduction per GB over the last 3 years, while India has the lowest rate in the world with just a few cents per GB. Many operators are looking to Rakuten Mobile's trailblazing strategy of deploying its network using a cloud-native mobile network blueprint to lower its rollout costs. The traditional telecommunications model is becoming increasingly hard to sustain amidst declining operating margins and continued expectations for cheaper services and more value inclusion. The analyst forecasts Rakuten could capture up to 10m subscribers in 3 years by offering lower pricing, e-Commerce bundling and other lifestyle services to its existing 100 million Rakuten customers, while KDDI and to a lesser extent NTT and Softbank already embarked on such journey. The analyst forecasts 5G mobile subscribers will represent nearly 75% subscribers of all subscriptions by 2028, 4G will represent about 25% of all connections while 3G will be shut down by the end of 2026. Broadband Subscribers - FTTH Push to Gigabit Speeds
After over 20 years of investments in fibre infrastructure, Japan boasts one of the highest FTTH penetration in the world as well as one of the most advanced, consumer broadband products offering speeds up to 10Gbps. However, most people use 100Mbps packages which are mostly bundled with mobile services by the three dominant players, NTT, KDDI and Softbank. Fixed broadband penetration is forecasted to grow modestly as Japan's investments in full-fibre networks are now reaching maturity with affordable packages and increased broadband household penetration growing towards saturation. Thematics-Telecoms Infrastructure / 5G / M&A / Infrastructure
Infrastructure funds, pension funds and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. This report outlines some real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks. The Japan Telecoms Industry Reporttransactions database analysis highlightsthe dearth of inbound (domestic) transactions in the Japanese telecommunications services market, with the largest transactions from Softbank entering the mobile market and consolidating its position by acquiring smaller operators. However, in the short to medium term, the mobile telco sector is unlikely to experience corporate activity with Rakuten market entry. Softbank Group is selling down shares of its mobile arm to raise cash and fortify its ailing balance sheet with the group still owning about 40% of its mobile unit. The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline. Reasons to Buy this Report
Benefit from the latest market opportunities
Understand the threats to your operations and investments and protect your company against future risks
Gain insights on emerging trends supporting, enhancing or disrupting your activities in the market
Get a full view of the competitive landscape to assess your market position. Forecasts as a key input for successful budgeting and strategic business planning in the telecoms market
Target business opportunities and risks in the telecoms sectorthrough our reviews of latest industry trends, regulatory changes and major deals, projects and investments
Assess the activities, strategy and market position of your competitors, partners and clientsvia our Operators Profiles
The Japan Telecommunications Industry Report, 2023-2028 includes a comprehensive review of the Japanese market dynamics, market sizing, market forecasts, analysis, insights and key trends. Companies Mentioned

Japan Telecoms Industry Report - 2023-2028: Featuring e-Mobile, JTower, Rakuten, Internet Initiative Japan & More

Cisco noted that this collaboration showcased the interoperability between technology providers using O-RAN base stations to deploy local 5G
Cisco and partners JTower, Mitsui Knowledge Company (MKI) and Airspan Networks have deployed a local 5G Open RAN (O-RAN) environment for in-building infrastructure sharing, with the main aim of introducing local 5G networks in Japan. The deployment is built with Cisco Private 5G, JTower’s Local 5G in-building infrastructure sharing system, Airspan’s 5G vRAN while MKI is responsible for the construction and testing of the end-to-end 5G wireless environments, the vendors said. In a release, Cisco said that the collaboration showcases the interoperability between technology providers using Open RAN base stations to deploy local 5G. The U.S. networking firm noted that the companies’ technology solutions will enable a new infrastructure- sharing approach to help enterprises and Japanese government entities to optimize costs when deploying local 5G systems. Currently, enterprises and local government entities must build their own networks, resulting in capital investment and operational deployment barriers, according to Cisco. “Network sharing provides a much more efficient solution for certain use cases. By introducing the concept of Local 5G, the initiative will create new value-added services for businesses and local governments by reducing barrier to entry investments, speeding up service launch times and reducing the carbon footprint,” said Atsushi Takahashi, director of cloud and service provider architecture at Cisco Japan. Cisco also highlighted that this approach enables efficient network sharing in large-scale buildings, factories and underground spaces by using local 5G-compatible optical relay Distributed Antenna System (DAS). The DAS converts radio waves from base stations into digital signals and distributes them via optical cables. In addition, some facility networks can be shared by mobile carriers and multiple local 5G service providers. Cisco Private 5G is hybrid cloud-based and Cisco says it was built from the start to enable local 5G networks. It is available as-a-service for simple consumption and has neutral host multi-tenancy capability that accommodates multiple local 5G service providers, eliminating the requirement to build a new core network and shortening network construction times, the company added. Meanwhile, JTower’s local 5G shared system enables efficient network sharing by using a local 5G-compatible optical relay DAS, reducing the capital investment required by eliminating the need for individual equipment procurement and installation work. Airspan’s Open RAN design provides the Radio Unit (RU), Distributed Unit (DU), and Central Unit (CU) that make up a 5G base station in a single chassis. MKI is responsible for the construction and testing of the end-to-end 5G wireless environments. “We will contribute to the development of the local 5G market in Japan through collaboration among the four companies, leveraging our experience in infrastructure sharing,” said Isao Ohashi, vice head of smart city planning division and head of external and government affairs at JTower. Earlier this year, Nokia had announced the opening of its revamped Advanced Technology Center (ATC) in Tokyo to test and demonstrate Nokia’s end-to-end portfolio of Local 5G equipment, software and services. The center will now allow enterprises, communications service providers (CSPs), and infrastructure providers to learn and understand the potential of Local 5G technology. Nokia had acquired a Local 5G radio license from the Ministry of Internal Affairs and Communications, which allows it to demonstrate Local 5G in its Roppongi office in Tokyo.

Cisco, Airspan, JTower deploy 5G O-RAN environment in Japan

Juan Pedro Tomás / RCR Wireless NewsCisco, Airspan, JTower deploy 5G O-RAN environment in Japan - Cisco noted that this collaboration showcased the interoperability between technology providers using O-RAN base stations to deploy local 5G Cisco and partners JTower, Mitsui Knowledge Company (MKI) and Airspan Networks have deployed a local 5G Open RAN (O-RAN) environment for in-building infrastructure sharing, with the main aim of introducing local ...

Cisco, Airspan, JTower deploy 5G O-RAN environment in Japan (Juan Pedro Tomás/RCR Wireless News)

NTT Docomo started using the JTower’s infra-sharing solution for its 4G network in 2016
JTower and NTT Docomo have decided to enter into a master transaction agreement with the aim of promoting infra-sharing of the latter’s existing towers. The contract will enable the companies to make a transaction in which 6,002 telecommunications towers owned by mobile operator NTT Docomo will be transferred to JTower. NTT Docomo will lease these towers from JTower as part of the deal. “JTower positions the purchase of existing telecommunications towers owned by telecommunications companies and the promotion of infra-sharing by attracting new tenants to these towers to be one of the key growth strategies. The transaction will greatly expand its business foundation as a tower sharing operator,” the company said in a release. Meanwhile, NTT Docomo said it is working to build an economical 5G network by promoting infrastructure sharing, adding that the transaction will enable further streamlining of network operations. “The companies plan to make the transfer of the towers where conditions have been met and JTower will strengthen its efforts to attract new tenants, such as telecommunications companies, including mobile network operators. Through these efforts, both companies aim to realize more efficient capital investments and operating expenses for the tenants of these towers and promote the early deployment of 5G network,” the two companies said in a release. JTower and Docomo also said they will continue to strengthen collaboration in the field of infra-sharing and work to resolve social issues that contribute to the telecommunications industry. NTT Docomo started using the JTower’s infra-sharing solution for its 4G network in 2016 and has expanded the use of the solution nationwide. Furthermore, from October 2020, the company started using 5G IBS at the time JTower installed 5G IBS in the Tokyo Metropolitan Government as the first 5G infra-sharing solution in Japan, and also began using smart poles in the Nishi-Shinjuku area of Tokyo. Both companies said they have continued to promote the use of infra-sharing through these activities. In October 2021, Japanese mobile operator Rakuten Mobile and JTower entered a capital alliance with the aim of sharing infrastructure in indoors and outdoors environments. Under the terms of the deal, the two companies will share equipment and towers to boost the development of 4G and 5G networks across Japan. JTower also noted that the use of shared infrastructure enables network development in a short period of time and at a low cost compared to when each mobile network operator installs their own networks separately. “In order to contribute to the development of a broader network, in 2020, we realized the first 5G indoor Infra-Sharing in Japan at the Tokyo metropolitan government headquarters building and in outdoor, we are strengthening our structure by launching new businesses such as tower sharing covering rural areas and smart poles mainly in urban areas,” the company said. Share this:

JTower, NTT Docomo ink deal to promote infra-sharing of towers in Japan

Intellasia East Asia News
25-Mar-2022 Intellasia |  ACN Newswire |  12:20 PM
TOKYO, Mar 25, 2022 - (JCN Newswire) -  JTOWER Inc. ("JTOWER") and NTT DOCOMO, INC. ("DOCOMO") have announced today that the companies have decided to enter into the master transaction agreement with the aim of promoting Infra-Sharing of DOCOMO's existing towers. The contract will enable the companies to make a transaction in which 6,002 telecommunications towers (maximum) owned by DOCOMO to be transferred to JTOWER for 106.2 billion yen (maximum) and DOCOMO will lease these towers from JTOWER ("the Transaction"). Image of a telecommunications tower
Aims of both companies
JTOWER positions the purchase of existing telecommunications towers owned by telecommunications companies and the promotion of Infra-Sharing by attracting new tenants to these towers (carve-out) to be one of the key growth strategies. The Transaction will greatly expand its business foundation as a tower sharing operator. DOCOMO is working to build an economical 5G network by promoting Infra-Sharing and the Transaction will enable further streamlining of network operations. Future Initiatives
The companies plan to make the transfer of the towers where conditions have been met and JTOWER will strengthen its efforts to attract new tenants, such as telecommunications companies, including mobile network operators. Through these efforts, both companies aim to realize more efficient capital investments and operating expenses for the tenants of these towers and promote the early deployment of 5G network. Furthermore, the companies will contribute to the realization of a sustainable society by reducing environmental impact through the effective use of existing infrastructure. JTOWER and DOCOMO will continue to strengthen collaboration in the field of Infra-Sharing and work to resolve social issues that contribute to the telecommunications industry. About JTOWER
JTOWER Inc. was founded in June 2012 as the first Infra-Sharing company in Japan. Centered on indoor Infra-Sharing solutions that consolidate the mobile networks inside the building, we provide a wide range of services including 5G that contribute to the future. https://en.jtower.co.jp/
About NTT DOCOMO
NTT DOCOMO, Japan's leading mobile operator with over 83 million subscriptions, is one of the world's foremost contributors to 3G, 4G and 5G mobile network technologies. Beyond core communications services, DOCOMO is challenging new frontiers in collaboration with a growing number of entities ("+d" partners), creating exciting and convenient value-added services that change the way people live and work. Under a medium-term plan toward 2020 and beyond, DOCOMO is pioneering a leading-edge 5G network to facilitate innovative services that will amaze and inspire customers beyond their expectations. https://www.docomo.ne.jp/english/ . Copyright 2022 JCN Newswire. All rights reserved. www.jcnnewswire.com

JTOWER and DOCOMO Agreed to the Master Transaction Agreement for Infra-Sharing of Existing Telecommunications Towers

NTT DoCoMo (TYO: 9437), part of NTT Group (Nippon Telegraph and Telephone Corporation), is a Japanese telecommunications company that provides convenient and secure mobile services that enable customers to realize smarter lives. The company serves over 68 million customers in Japan via advanced wireless networks, including a nationwide LTE network and one of the world's most progressive LTE-Advanced networks.

NTT DoCoMo

In October 2021 , Japanese mobile operator Rakuten Mobile and JTower entered a capital alliance with the aim of sharing infrastructure in indoors and outdoors environments .

NTT Docomo (TSE: 9437) is a telecommunications company. It specializes in offering 5G and 4G data communications products driver support products, overseas telecommunication plans as well as related breakdown, repair, and customer support services. The company was founded in 1992 and is based in Tokyo, Japan.

NTT Docomo

Docomo.com is an investor based out of Tokyo, Japan.

Docomo.com

DOCOMO Digital provides services such as marketing, payment and financial services combined with carrier data and billing capabilities. The company was founded in 2016 and is based in London, U.K. In June 2020, DOCOMO Digital was acquired by Bango. The terms of the transaction were not disclosed.

DOCOMO Digital

Toei Transportation operates as an online application. It is a subway route planner. It also provides information on bus and tram services. It is based in Tokyo, Japan.

Toei Transportation

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JTOWER

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JTOWER (TYO: 4485) develops, designs, and constructs mobile telecommunication networks to provide in-building mobile infrastructure sharing services. The company also develops, designs, and provides information platform services.

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