Tech Mahindra sells stake in Altiostar to Rakuten for $45 million

IT services major Tech Mahindra and Rakuten Mobile have signed an agreement, under which the Indian tech firm will be a preferred partner and provide technologies to support the development and deployment of mobile networks for global customers of Rakuten Communications Platform (RCP). Tech Mahindra’s subsidiary has also divested its stake in Altiostar Networks for $45 million to Rakuten USA.

Through the agreement, Tech Mahindra will also provide managed IT, security and network services to Rakuten Mobile, and there are also plans to designate Tech Mahindra as an official reseller of RCP.

Both companies are expected to leverage their partnership to develop and deploy cloud-based virtualised mobile networks based on RCP. As per the companies, this partnership presents an opportunity in creating Indo-Japanese collaboration in creating a technology that not only can serve the global market but can enhance the ability of Indian engineering and innovations.

The deal will allow Tech Mahindra to implement software-defined 5G infrastructure for mobile networks. CP Gurnani, CEO, Tech Mahindra, did not share if the company was in talks with other mobile operators apart from Rakuten.

“This first of its kind collaboration with Rakuten Mobile not only strengthens our existing partnership with them but will also enable us to drive innovation in the telecom space, provide enhanced customer experience and lead the transformation in mobile network technology from the forefront,” Gurnani said.

RCP is a cloud-native telco platform that enables telcos and enterprises around the world to easily build secure and open mobile networks at speed and low cost, to generate new revenue streams and to offer customers innovative and immersive experiences. RCP was developed by Rakuten Mobile and is based on its new generation mobile network in Japan which combines the latest technology in virtualisation and automation, including containers and microservices, and is built on key secure operations principles.