Rakuten Symphony and Kyivstar Sign Letter of Intent to Deploy Open RAN to Rebuild Ukraine’s Digital Infrastructure
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The announcement of VEON's subsidiary Kyivstar to procure and deploy Rakuten Symphony's Open RAN technology is a significant development in the telecommunications sector. Open RAN, which stands for Open Radio Access Network, is a transformative approach that enables operators to use software and hardware from different vendors, increasing flexibility and potentially reducing costs. This technology is particularly relevant as it can accelerate the deployment of 4G and 5G networks, which are critical for modern digital economies. The investment in Ukraine's digital infrastructure signals a strong commitment to the region's recovery and could lead to enhanced connectivity and economic growth. The involvement of high-level government officials from Japan and Ukraine underscores the strategic importance of this initiative.
From a business perspective, the deployment of Open RAN could give Kyivstar a competitive edge in the Ukrainian market by allowing for more agile network upgrades and maintenance. For Rakuten Symphony, this represents a substantial opportunity to demonstrate the efficacy of its technology in a challenging environment, potentially leading to further adoption of its solutions globally. Investors might view this collaboration as a positive indicator of VEON's commitment to innovation and market expansion, which could have favorable implications for the company's long-term growth and stock performance.
The financial implications of VEON's commitment to invest 600 million USD, with intentions to increase to 1 billion USD, in Ukraine's digital infrastructure are considerable. This level of investment not only reflects the scale of the reconstruction efforts required but also VEON's confidence in the future of the Ukrainian market. The investment is likely to be a multi-year driver of growth for Kyivstar and could lead to significant returns if the deployment of Open RAN technology leads to cost savings and increased customer satisfaction.
For the broader stock market, this news may be received as a positive development, showcasing how companies can contribute to societal recovery while pursuing business opportunities. The long-term nature of this investment could provide a steady growth narrative for VEON, potentially making it an attractive proposition for investors seeking companies with a blend of social impact and financial performance. It's also important to note that such large-scale investments carry risks, including political and economic instability in the region, which investors will need to monitor closely.
Analyzing the market impact of Kyivstar's planned deployment of Open RAN technology reveals potential shifts in the telecommunications landscape. Open RAN is poised to disrupt traditional network deployment models, which could lead to changes in market dynamics as operators seek more cost-effective and flexible infrastructure solutions. The Ukrainian telecommunications market could become a case study in the adoption of Open RAN, influencing other operators in Eastern Europe and beyond.
The initiative's scope, involving both 4G and 5G technology, indicates an effort to not only recover but also future-proof Ukraine's digital infrastructure. This could attract additional foreign investment and technology partnerships, bolstering the country's digital economy. For Rakuten Symphony, success in Ukraine could translate into increased market credibility and lead to further global business opportunities, potentially impacting the stock market valuation of Rakuten Group.
Companies intend to take the first steps in implementation in 2024
Barcelona, February 26, 2024 – VEON, (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services, today announces that its wholly-owned subsidiary Kyivstar and Rakuten Symphony, a subsidiary of the leading internet services company Rakuten Group have signed of a Letter of Intent (LoI) that confirms Kyivstar’s interest in procuring and deploying Rakuten Symphony's Open Radio Access Network (Open RAN) technology in its network.
The LoI confirms Kyivstar’s intent to use Rakuten’s Open RAN and 5G technologies to help rebuild Ukraine's digital infrastructure, reinforcing both companies’ commitment to supporting Ukraine’s recovery and reconstruction. The companies intend to take the first steps in the implementation of their cooperation within 2024. Kyivstar and Rakuten Symphony are currently collaborating to define the scope of their initiative, which will involve both 4G and 5G Open RAN technology.
Rakuten and Kyivstar held a signing ceremony for the LoI in the presence of Fumio Kishida, Prime Minister of Japan, and Denys Shmyhal, Prime Minister of Ukraine, at the Japan-Ukraine Conference for Promotion of Economic Growth and Reconstruction, hosted in Tokyo on February 19, with Hideyuki Hirama, EVP, COO and CSO of Rakuten Symphony, and Sergiy Korsunsky, Ukrainian Ambassador to Japan, in attendance.
Mickey Mikitani, Chairman and CEO, Rakuten Group, said, “Rakuten is extremely proud to continue its support for Ukraine’s efforts to rebuild its infrastructure and in supporting Kyivstar’s vision for deploying Open RAN. We look forward to advancing collaboration between our two organizations and to realising Ukraine’s digital potential through the rebuilding of the country’s digital infrastructure.”
Kaan Terzioglu, Group CEO of VEON, said “We are now in the implementation phase of our 600 million USD investment commitment for the reconstruction of Ukraine. I share the excitement of our Kyivstar team, under the leadership of Kyivstar CEO Oleksandr Komarov, in working with Rakuten to rebuild the country’s infrastructure with Open RAN as a part of this commitment. We have a shared passion for building Ukraine’s digital future and I’m glad to see the progress in our joint effort.”
The signing follows a number of measures taken by Rakuten and VEON to support Ukraine throughout the war, demonstrating a commitment to its people, economy and post-war reconstruction. In August 2023, Rakuten Symphony and VEON, Kyivstar’s parent company, signed a Memorandum of Understanding to explore cooperation in Ukraine, with the goal of accelerating the reconstruction of the country’s infrastructure, through collaboration on Open RAN and digital services.
Rakuten Group Chairman and CEO Mickey Mikitani accompanied Japanese government officials on a diplomatic mission to Ukraine in September 2023. Serving as a representative of Japan’s private sector, Mikitani met with Ukraine leaders including President Volodymyr Zelenskyy and Minister Mykhailo Fedorov, Ukraine’s Vice Prime Minister for Innovation, Development of Education, Science and Technology and Minister of Digital Transformation.
Rakuten also launched the Ukraine Humanitarian Crisis Emergency Relief Fund through its online donation platform, Rakuten Clutch Special Charity Fund, and held a t-shirt donation drive to support Ukraine that raised more than 1.3 billion yen.
VEON’s Kyivstar, the largest telecommunications operator in Ukraine, has kept its 24 million customers connected at home and abroad throughout the past two years, and continued to invest heavily in its network and digital services. One of the largest taxpayers in Ukraine, Kyivstar also supports a number of charitable causes, most recently raising 4.8 million USD for the demining of Ukraine.
VEON has committed 600 million USD in investments over three years, supporting Ukraine’s reconstruction and recovery; and has announced the intention to widen the scope of its commitment to 1 billion USD in five years, if market conditions permit.
About VEON
VEON is a global digital operator that currently provides converged connectivity and online services to nearly 160 million customers in six dynamic markets. We are transforming people’s lives, empowering individuals, creating opportunities for greater digital inclusion and driving economic growth across countries that are home to more than
About Kyivstar
Kyivstar is the largest telecoms operator in Ukraine with 24 million mobile subscribers and over 1.1 million home internet subscribers. The company provides services based on mobile and fixed-line technologies, including 4G, as well as Big Data, IoT, cloud solutions, digital TV, digital health and others. Kyivstar is
About Rakuten
Rakuten Group, Inc. is a global leader in internet services that empower individuals, communities, businesses and society. Founded in Tokyo in 1997 as an online marketplace, Rakuten has expanded to offer services in e-commerce, fintech, digital content and communications to approximately 1.7 billion members around the world. The Rakuten Group has nearly 32,000 employees, and operations in 30 countries and regions. For more information visit https://global.rakuten.com/corp/
About Rakuten Symphony
Rakuten Symphony is reimagining telecom, changing supply chain norms and disrupting outmoded thinking that threatens the industry’s pursuit of rapid innovation and growth. Based on proven modern infrastructure practices, its open interface platforms make it possible to launch and operate advanced mobile services in a fraction of the time and cost of conventional approaches, with no compromise to network quality or security. Rakuten Symphony has operations in Japan, the United States, Singapore, India, Europe and the Middle East Africa region. For more information, visit: https://symphony.rakuten.com.
Disclaimer
This release contains “forward-looking statements,” as the phrase is defined in
Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S.
Securities Exchange Act of 1934, as amended. Forward-looking statements are not
historical facts, and include statements relating to, among other things, VEON’s investment and commercial plans. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON
might not even anticipate. The forward-looking statements contained in this release speak
only as of the date of this release. VEON does not undertake to publicly update, except as
required by U.S. federal securities laws, any forward-looking statement to reflect events or
circumstances after such dates or to reflect the occurrence of unanticipated events.
Contact information
VEON
Hande Asik
Group Director of Strategic Communication
pr@veon.com
Rakuten Symphony
Corporate Communications
mobile-global-pr@mail.rakuten.com
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