Rakuten Billionaire Defends Costly Mobile Foray With Big AI Bet
Sunday, Jan 19, 2025 10:52 pm ET
4min read 
Rakuten, the Japanese e-commerce giant, has been making waves in the mobile industry with its ambitious expansion plans. The company, led by billionaire Mickey Mikitani, has invested heavily in its mobile network, Rakuten Mobile, which launched in 2020. Despite the significant costs associated with this venture, Mikitani remains confident in the company's strategy, pointing to a big bet on artificial intelligence (AI) as a key driver of future growth.
Rakuten Mobile's fully virtualized, cloud-native network, built on Open RAN standards, has set a new benchmark for modern telecommunications. By leveraging AI, Rakuten aims to enhance user experience, optimize network performance, and drive revenue growth. The company's AI investments focus on several key areas, including network optimization, predictive maintenance, personalized recommendations, and fraud detection.
Network optimization and predictive maintenance are crucial for ensuring a seamless user experience. AI algorithms can analyze network traffic patterns and predict congestion points, enabling proactive resource allocation and minimizing downtime. By using AI for predictive maintenance, Rakuten can identify and address potential network issues before they cause outages, ensuring a high-quality network experience for its users.
Personalized recommendations and targeted advertising are another key area where AI can drive revenue growth. By analyzing user data, such as browsing history, app usage, and location, Rakuten can provide personalized recommendations for apps, content, and services. This enhances the user experience and increases engagement, while targeted advertising based on user preferences and behavior can generate additional revenue for the company.
Fraud detection and security are also critical aspects of Rakuten's AI strategy. AI can help detect and prevent fraudulent activities, such as unauthorized access or identity theft, by analyzing user behavior and network patterns. This improves network security and protects users' personal information, building user trust and maintaining a positive brand image.
Rakuten's AI investments align with its mobile network expansion plans by focusing on leveraging AI to enhance network performance, improve customer experience, and drive innovation. By investing in AI, Rakuten can differentiate itself from competitors and drive revenue growth in the rapidly evolving telecommunications industry.
In conclusion, Rakuten's billionaire CEO, Mickey Mikitani, defends the company's costly mobile foray by pointing to a big bet on artificial intelligence. By leveraging AI to optimize network performance, enhance user experience, and drive revenue growth, Rakuten aims to stay competitive in the rapidly evolving telecommunications industry. The company's AI investments align with its mobile network expansion plans, focusing on network optimization, predictive maintenance, personalized recommendations, and fraud detection. As Rakuten continues to invest in AI and expand its mobile network, it is well-positioned to capitalize on the growing demand for innovative and personalized mobile services.
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