In the dynamic landscape of telecommunications, we often find ourselves caught between the promise of emerging technologies and the practicalities of deployment. My recent fireside chat with Marc Einstein, Research Director at Counterpoint Research, during the Rakuten Tech Conference 2025, exploring "The Future Telco in the AI Era," offered a moment for reflection – not just on what we've built at Rakuten Mobile, but on the profound shift AI is orchestrating across our entire industry.
It's clear that AI is more than just another tool; it is fundamentally reshaping the telco's identity, moving us from mere connectivity providers to architects of intelligent, self-aware networks.
For decades, our industry's narrative has been defined by the "G"s – 3G, 4G, 5G. Each generation brought new speeds, new capabilities. Yet, as Marc astutely observed, the current wave of excitement isn't about a new radio standard; it's about AI. This distinction is crucial. While 5G was built for speed, as I highlighted, 6G will be built for intelligence. This implies a fundamental re-architecture, where AI isn't an overlay, but an intrinsic part of the protocol stack itself.
At Rakuten Mobile, our "AI-first" and "software-first" philosophy is about more than efficiency; it has prepared us for this very future. It allowed us to shed the legacy constraints that often hinder traditional operators, enabling us to build a network designed for emergent intelligence, not just faster data pipes. This foresight has been instrumental in our journey to becoming EBITDA positive within a remarkably short time frame, demonstrating that strategic, AI-driven transformation can yield significant financial returns alongside technological leadership.
The journey from manual operations to full autonomy is a continuum. We've spoken for years about self-healing networks, but now, with advanced AI, this is becoming a tangible reality. Our current Level 3.5 maturity in network automation, with a clear path to Level 4, signifies a deeper engagement of AI. Consider the scale: we manage over 350,000 Open RAN cell sites with approximately 250 engineers: a feat that would require thousands at traditional operators. It's about agentic systems that don't just follow pre-programmed rules, but can intelligently predict, diagnose, and resolve issues autonomously.
Consider the impact: when a server in our data center experiences an anomaly, the network doesn't wait for human intervention. It self-heals, seamlessly rerouting workloads, ensuring continuous service. AI-first delivery cuts OPEX by 25-30% and reduces downtime by approximately 30%, translating directly to enhanced customer experience – fewer outages, more reliable connectivity – and profound operational efficiencies, allowing us to optimize our workforce and reduce costs. This isn't just about doing things faster; it's about doing things smarter, with a degree of resilience that was previously unattainable.
As we embrace this powerful technology, the "how" becomes as important as the "what." We discussed the implications of AI on our workforce, and I firmly believe that AI should be viewed as a co-pilot. Our "AI-nization" philosophy at Rakuten is about empowering our employees, equipping them with AI tools, and fostering a culture where human creativity is augmented by machine intelligence. This creates new opportunities, new roles, and a more dynamic, skilled workforce.
To illustrate our commitment at scale: over 15,000 Rakuten employees are actively using Rakuten AI daily, with token consumption growing 1,631% year-over-year. This isn't a pilot program - it's a cultural transformation where AI is becoming normalized across the organization.
Furthermore, the environmental imperative is undeniable. AI offers powerful solutions for sustainability. Our proprietary Radio Intelligent Controller (RIC) exemplifies this, dynamically optimizing network elements to achieve 15-20% energy savings, equivalent to charging around 100million smartphones monthly. This demonstrates that technological advancement and ecological responsibility can go hand-in-hand.
Looking forward, the convergence of AI with other transformative technologies paints a compelling picture.
Through physical AI, the network will increasingly extend its intelligence into the physical world, enabling autonomous systems like delivery robots and intelligent infrastructure. Our work with autonomous delivery and AI-optimized antenna tilts are early indicators of this trend.
As we’re extending connectivity to every corner, even challenging terrains, through Non-Terrestrial Networks (NTN) services, AI will be critical in managing the complexity and optimizing performance of these hybrid networks.
Looking further into the future, quantum computing, while still nascent, holds the promise of unlocking true AI capabilities that could solve problems currently beyond our reach, from advanced cryptography to highly complex network optimization.
The message for the broader telecommunications industry is clear: the AI era demands a thoughtful, strategic transformation. It's not about superficial AI adoption but about embedding intelligence into the very core of network design, operations, and service delivery. This requires a willingness to challenge legacy paradigms, invest in software-centric architectures, and cultivate an AI-literate workforce.
Rakuten Mobile's journey is a testament to what's possible when a clear vision for an AI-native telco is pursued with conviction. It's a journey of continuous learning, adaptation, and a profound belief in the power of technology to democratize access and enrich lives. As we move towards 6G and beyond, the telco's core identity will be defined not just by the speed of its pipes, but by the intelligence flowing through them.shaping a truly connected and collective future. The question is no longer if the industry will transform - it will. The question is who leads, and who participates in shaping that future. We believe that future is collaborative, intelligent, and fundamentally human-centric.
