Stage X Co., South Korea’s newest mobile carrier, has forged a strategic alliance with Japan’s Rakuten Group to make inroads into the competitive South Korean mobile telecom market. This partnership was formalized through a memorandum of understanding signed on Thursday, focusing on mobile network technology and service development.
Stage X, which received approval in February from Korea’s Ministry of Science and ICT, is set to operate in the 28 gigahertz (GHz) spectrum, marking it as the country’s fourth mobile carrier and the first new entrant in over two decades. The market has been dominated by three major players: SK Telecom Co., KT Corp., and LG Uplus Corp.
Backed by a consortium that includes its parent company Stage Five—a mobile virtual network operator recently spun off from Kakao Corp.—along with Shinhan Securities Co., and other tech firms, Stage X is under a mandate to build 6,000 base stations nationwide within three years. The company aims to launch its nationwide mobile network services in the first half of next year, initially targeting business sectors such as universities, airports, and hospitals before expanding to general consumers.
The collaboration with Rakuten Mobile and Rakuten Symphony aims to leverage Rakuten’s expertise gained from its entry into the Japanese telecom market in 2020. Rakuten Mobile will provide insights into mobile network services, while Rakuten Symphony will share its cloud-based mobile service solutions. This partnership is expected to enhance Stage X’s offerings with high-speed, ultra-low latency, and extensively connected mobile services.
Additionally, the agreement includes future cooperation on beyond 5G services, exploring mid-band frequency utilization and the development of a national 6G network.
However, some industry observers express skepticism regarding the potential success of this partnership, pointing to Rakuten Mobile’s financial struggles in the Japanese market since its launch. Despite this, both companies are optimistic about their collaborative potential and the impact they can have on fostering competition and innovation in the South Korean telecom sector.
