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Is Rakuten (TSE:4755) Turning Open RAN Ambitions Into a Durable Global Telecom Software Edge?

Simply Wall St · 1d ago
  • Earlier in 2025, VEON’s Beeline Kazakhstan and Rakuten Group’s subsidiary Rakuten Symphony signed a Memorandum of Understanding to explore collaboration on next‑generation connectivity, Open RAN-based networks, AI-powered network intelligence, and cloud-native infrastructure in Kazakhstan.
  • This agreement extends Rakuten Symphony’s international telecom technology footprint, building on its work with VEON’s Kyivstar Group and underscoring growing demand for its software-driven network solutions.
  • We’ll now examine how this expanded Open RAN and cloud-network collaboration with Beeline Kazakhstan could influence Rakuten Group’s broader investment narrative.

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Rakuten Group Investment Narrative Recap

To own Rakuten Group, you have to believe its ecosystem and telecom technology can offset current losses at Rakuten Mobile and ongoing balance sheet pressure. The Beeline Kazakhstan MoU slightly reinforces the short term catalyst around Rakuten Symphony’s external revenue potential, but it does not materially change the biggest near term risk, which remains execution toward profitability and maintaining financial flexibility while funding network and technology investments.

Among recent developments, management’s 2025 guidance for continued double digit revenue growth (excluding securities) is most relevant here, as it frames how investors might see incremental Symphony agreements like Beeline Kazakhstan. If Rakuten can translate international Open RAN and cloud network collaborations into higher margin software income, that could support the broader push toward group profitability and help ease concerns about ongoing refinancing needs and capital intensity in mobile.

Yet for all the excitement around Open RAN and AI powered networks, investors should be aware that Rakuten’s reliance on external partnerships and its still unprofitable mobile arm means...

Read the full narrative on Rakuten Group (it's free!)

Rakuten Group's narrative projects ¥2,965.8 billion revenue and ¥79.4 billion earnings by 2028. This requires 7.5% yearly revenue growth and a ¥290.3 billion earnings increase from ¥-210.9 billion today.

Uncover how Rakuten Group's forecasts yield a ¥1020 fair value, in line with its current price.

Exploring Other Perspectives

TSE:4755 1-Year Stock Price Chart
TSE:4755 1-Year Stock Price Chart

Four fair value estimates from the Simply Wall St Community span roughly ¥1,019 to ¥4,182 per share, showing how far apart individual views can be. When you weigh those opinions against the central catalyst of Rakuten Symphony’s global partnerships, it underlines how differently investors assess the company’s ability to turn network technology deals into sustainable earnings.

Explore 4 other fair value estimates on Rakuten Group - why the stock might be worth just ¥1020!

Build Your Own Rakuten Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Rakuten Group research is our analysis highlighting 2 key rewards that could impact your investment decision.
  • Our free Rakuten Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rakuten Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.