Rakuten Acquiring "DMM mobile" to Strengthen Customer Base, Mobile Ecosystem

Rakuten Mobile, Inc. announced that a resolution was passed at the Board of Directors meeting held July 4, 2019 in which “DMM mobile”, the MVNO (mobile virtual network operator) business operated by DMM.com LLC, and “DMM Hikari,” the high quality internet service business operated by DMM.com LLC which utilizes “Flet’s Hikari,” will be transferred to Rakuten Mobile through a company split effective as of September 1, 2019 (tentative).

A total of approximately 2.3 billion yen will be delivered as consideration for the company split to DMM.com LLC.

Rakuten Mobile began providing its MVNO service “Rakuten Mobile” in October 2014. Since launch, it has expanded its number of subscribers and now holds the top share1 in the Japanese domestic MVNO market.

By leveraging the synergies between the diverse lineup of services offered by the Rakuten Group and the Rakuten Super Points loyalty program, Rakuten Mobile aims to provide a value-added mobile service to its subscribers. Revenue from the business has expanded 6-fold since the launch of the service, and there are now more than 500 Rakuten Mobile shops nationwide (as of May 10, 2019).

DMM mobile is an MVNO service that utilizes the LTE/3G network of NTT DOCOMO, Inc. Since its launch in December 2014, DMM mobile has provided a low-cost high-quality mobile communications service, and its domestic MVNO business (SIM-card-based communications business) has approximately 240,000 subscribers (as of June 30, 2019). DMM Hikari is a high quality internet communications service that utilizes the fiber optic lines of NTT Hikari, and serves approximately 20,000 subscribers (as of June 30, 2019).

The transfer of DMM mobile and DMM Hikari to Rakuten Mobile will allow the company to expand the customer base of its mobile business and further strengthen membership benefits of the Rakuten Ecosystem. There are also plans in development to maximize synergy with the other services and business in the Rakuten Ecosystem, including transition to the Rakuten Super Points loyalty program after the transfer comes into effect.

Going forward, Rakuten Mobile aims to improve its services based on a “customer first” philosophy and, through close collaboration with the MNO (mobile network operator) services set to launch in October 2019, aims to make customers’ lives even more convenient and enjoyable.

*1 Based on a market survey on the low cost SIM service usage carried out by MMD Labo in March 2019 (Japanese only)