Japanese e-commerce major Rakuten invests in US mobile tech firm Altiostar

Photo: Reuters

Japanese e-commerce giant Rakuten Inc is making a strategic investment in US-based mobile technology firm Altiostar Networks Inc, according to its announcement on Tuesday.

This investment is in line with its plan to build a cutting-edge wireless network to keep it competitive in mobile network business.

“Our vision for Rakuten Mobile Network is to build the world’s first end-to-end, fully virtualized, software-defined mobile network: A network that innovates at the Speed-of-Software and scales at the Speed-of-Cloud. Altiostar technology is key to realizing this vision within the year,” said Rakuten Mobile Network’s CTO Tareq Amin.

The company did not reveal the financial terms, but said the US startup would use the proceeds to expand its virtual radio access network solutions for 4G and 5G to accelerate the industry paradigm shift to web-scale cloud native mobile networks.

In return, Rakuten can utilise Altiostar’s technology innovation to push its new business models and bring affordable broadband to the masses through web-scale mobile networks, Altiostar Networks’ CEO Ashraf Dahod mentioned in the statement.

Upon the completion of the transaction, Rakuten Mobile Network President Yoshihisa Yamada and CTO Tareq Amin will join the board of Altiostar.

The deal is subject to approval by the Committee on Foreign Investment in the United States.

Rakuten, founded in Tokyo in 1997 as an online marketplace, has expanded to offer services in e-commerce, fintech, digital content and communications to more than 1.2 billion members globally.

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