Rakuten and Sercomm Jointly Announce the World's First Virtualized Small Cell

By Splitting Distributed Unit and Control Unit of small cell,Rakuten and Sercomm offer Disruptive Solution to Enable Next-generation Mobile Network

BARCELONA,Spain,Feb. 26,2019 -- Rakuten,Inc. (TSE: 4755),a global leader in internet services and soon-to-be the newest mobile network operator in Japan,and Sercomm (TWSE: 5388),a leading manufacturer and supplier of telecom equipment,todayannouncedthe world's first virtualized small cell. Jointly developed by Rakuten and Sercomm,the small cell offers enhanced user experience by leveraging the world's first end-to-end cloud native technology. Adopting next-generation network architecture,the virtualized small cell answers the needs of the telecom industry by providing easy-to-install,high performance,expandable flexibility and seamless migration to 5G networks. Rakuten and Sercomm will showcase the product at this week's Mobile World Congress 2019.

By splitting the distributed unit (DU) and control unit (CU),the virtualized small cell offers a disruptive solution for mobile networks. Through its powerful CU computing capability,the virtualized small cell,with joint processing and cooperative radio sharing capability,can be dynamically installed as needed. The virtualized small cell enables a true end-to-end cloud native platform which doesnot only greatly improves reliability,but also facilitates a heterogeneous network. The virtualized small cell supports 4G LTE and is 5G upgradable with renewed DUs. By adopting an open,virtualized and split RAN (Radio Access Network),telecom operators can enjoy cost savings and fast time-to-market without the hassles of traditional base station installation.

Integrated with 2.4G/5G dual band Wi-Fi capability,in addition to new installation,the virtualized small cells can easily replace the existing Wi-Fi APs on site to reduce deployment effort without sacrificing Wi-Fi functionality. The small cell also supports PoE (Power-over-Ethernet),making it ideal for ceiling or wall-mounted installation at residential,commercial and industrial sites,such as apartments,residential complexes,office buildings,shopping malls and factories.

"Rakuten reaches over 1.2 billion of consumers worldwide with services offered in e-commerce,fintech and digital content,and now we are ready to reinforce our commitment to consumers for better living by delivering a new mobile network service,with the support of industry-leading technology partners such as Sercomm," said Tareq Amin,Chief Technology Officer,Rakuten Mobile Network. "We aim to realize our vision of creating the world's first fully virtualized,end-to-end cloud-native mobile network. Sercomm is the technology leader in small cell products,with its recognized design capability and rich deployment experience,and together we are committed to offering a reliable,cost-effective and convenient mobile service for our customers."

"At Sercomm,we are committed to thedevelopment of innovative solutions to enable next generation networks. We strive to offer high-quality solutions to telecom customersthrough investment of significant R&D resources," said James Wang,CEO of Sercomm. "We are pleased to team up with an industry leader like Rakuten in realizing a next generation mobile network. Together we will open a new era for telecommunication service."

Rakuten andSercomm will demonstrate the small cell atMobile World Congress 2019in Barcelona,from February 25to 28:

Rakuten Booth: Hall 4,Booth 4A10

Sercomm Booth at #2G3,Hall 2

About Rakuten

Rakuten,Inc. (TSE: 4755) 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 more than 1.2 billion members around the world. The Rakuten Group has over 17,000 employees,and operations in 30 countries and regions. For more information visit https://global.rakuten.com/corp/.

About Sercomm Corporation

Sercomm Corporation (TWSE: 5388) is a worldwide leading manufacturer of telecom and broadband equipment. Founded in 1992,Sercomm has focused on developing embedded solutions to make networking simple and affordable. With its fully integrated engineering capability and its state-of-the-art manufacturing facility,Sercomm offers comprehensive telecom broadband solutions such as small cells,residential/enterprise gateways,and IoT products,and is now a global leader in the industry. Headquartered in Taipei,Taiwan,Sercomm's global operation network covers markets in North America,Europe,and the Asia Pacific region. Its customer base includes the world's top service provider,networking OEM,and system integrators. For more information,please visitwww.sercomm.com.