TOKYO — A two-hour movie in seconds. That is the promise SoftBank Corp. is selling with its new 5G service, launched April 1. The Tokyo-based tech giant is now the third carrier in Japan to flip the switch on the next-generation network, following NTT Docomo and KDDI Corp. But the real story here is not faster Netflix downloads. It is what happens when data moves 100 times quicker than 4G.
SoftBank president Ken Miyauchi said the company is committed to delivering high-quality 5G. That vague pledge will be tested in the coming months. For now, coverage is thin. The service is live only in parts of seven prefectures, including Tokyo and Osaka. Most of Japan will wait years for a full rollout.
The speed jump is real. SoftBank claims its 5G network can send and receive data at rates 100 times faster than existing 4G infrastructure. A two-hour feature film downloads in a few seconds. That is the kind of number that grabs headlines. But the company is betting its real money on industrial and medical applications. Autonomous driving needs near-instant data relay. Remote clinical services — surgeries guided by doctors miles away — require zero lag. 5G makes those scenarios feasible in ways 4G never could.
A spokesperson for the Japanese Ministry of Internal Affairs and Communications noted that the allocation of 5G spectrum will play an important role in the country’s digital economy. That is bureaucrat-speak for a big bet. Japan is pouring spectrum rights into private hands, hoping the infrastructure unlocks new industries. SoftBank is one of the winners of that allocation. Now it has to build the network.
But SoftBank is not alone in the race. Rakuten Inc., the e-commerce giant that entered the mobile phone market only this April, has announced plans to launch its own 5G service in June. That is a shock to the system. Rakuten is a newcomer, building its network from scratch. It has no legacy 4G towers to upgrade. That could let it leapfrog older carriers on architecture and cost. Takashi Tanaka, a telecom analyst at Mitsubishi UFJ Morgan Stanley Securities, said the entry of new players will significantly increase competition, driving innovation and improving services. Tanaka’s analysis is straightforward: more rivals mean better deals for customers.
SoftBank’s launch is not a revolution. It is a first step. The network is small. The devices that can use it are still scarce. Most consumers will not notice a difference for months. But the groundwork is laid. The Japanese telecom market, long dominated by three giants, is cracking open. Rakuten is the wedge. SoftBank, Docomo, and KDDI are scrambling to keep pace.
The immediate effect is likely to be price pressure. Japanese mobile bills have been notoriously high. The government has pushed for lower rates. 5G gives carriers a reason to charge a premium — faster speeds, new services — but it also gives customers a reason to shop around. If Rakuten undercuts SoftBank on price while offering comparable speed, SoftBank will have to respond.
For now, SoftBank is selling speed. The long game is about what that speed enables. Factories that run without humans. Doctors who operate from across the country. Cars that drive themselves. Those are not marketing slogans. They are engineering problems that 5G can solve. SoftBank is betting it can solve them first. The clock is ticking. Rakuten is coming in June.
