At some point, every telecom operator must confront a hard truth: commodity connectivity alone will not drive growth.
We’ve spent decades building and scaling networks. But the value-added services we once controlled, like voice, messaging and even identity management, are largely provided running above.
Operators need a new path to monetization.
We have tried a technology-led approach.
It’s now time to rethink what we monetize, and how.
Today, we are at a juncture where we need to approach telecom from the perspective of a software company – not a traditional operator. That shift made all the difference for Rakuten. Instead of asking “How do we sell more network?” we asked, “How do we use the network as a first-class participant in the online ecosystem?”
When we built Rakuten Mobile’s network in Japan, our goal was to build a network that was software-first, data-first, API-first,and programmable-first.
We removed legacy components that served no current purpose. We avoided duplication across systems. Only fully programmable elements were allowed, that enabled us to automate everywhere.
We now have 400,000+ radiating cells serving over 9 million subscribers with 40% lower capex and 30% lower opex than the traditional approach. And with a core team of just 250 people managing operations, we have managed to disintermediate size of team from size of network. We call this hyperscale operations, and it is the same economic dynamic seen in all successful large technology companies.
Ultimately, Rakuten drives greater efficiency, lower costs, and scalable growth by relying more on machines than people to operate the business. This shift flattens the cost curve, even as capabilities expand and new services are added.
But here’s the point: simplification isn’t just about efficiency. It’s the foundation for monetization. The more streamlined and programmable your network is, the more flexible and scalable your services can be.
Operators still treat their networks like pipelines: valuable, but passive. But when networks become platforms, everything changes.
In a future-ready telco, operators need to build services that inform how they design and optimize the network itself. Monetization doesn’t come at the end. It’s built in from the start.
This is how you shift from transactional revenue to relationship-based growth.
This is how we change the customer promise for unit connectivity to serving experience.
To learn more about what this entails, watch this interview with Pranav Shanker, Rakuten Data Whisperer or access his insights:
https://www.linkedin.com/events/unlockingdataintelligenceinapri7342698646326439937/theater/
To close with a quote from Pranav:
“Yes, Rakuten benefits from an ecosystem of 70+ consumer businesses that can both leverage our insights and feed our findings. But in actuality, any operator can establish similar value by striking strategic partnerships and asking smarter questions of the data they already have. With the right differential privacy practices, strict internal controls and a privacy-first mindset in place, competitive intelligence, personalized experience and insight monetization are all possible. Truthfully, the differentiator isn’t the data itself but the willingness to think differently and act on new ideas. It’s about fostering a company culture where data privacy is respected without compromise and data is viewed as a resource that can responsibly drive innovation.
Adapted from a SenzaFili conversation with Udai Kanukolanu on how network transformation enables new monetization platforms.Watch the full interview here.
