SoftBank is borrowing about $282 million (35,059,487,624 yen) for the development of 5G base stations with the aim of further strengthening its 5G network in Japan.
According to SoftBank, at the end of March 2022, it covers 90% of the Japanese population with its 5G network.
But this new loan financing will go toward increasing the population coverage ratio to 95% by the end of March 2024 through further expansion (using terrestrial 5G base stations).*
SoftBank also has a High Altitude Platform Stations (HAPS) initiative that is working to provide a “stratospheric communication platform that provides a communication network from the stratosphere to a wide area…and realizing a society where everyone can connect to a stable communication network.”
In September 2021 SoftBank acquired approximately 200 HAPS patents from Alphabet’s Loon following the winddown of Loon. With these patents, SoftBank and its subsidiary HAPSMobile now own approximately 500 HAPS-related patents.
Of today's funding news, SoftBank said, “With this funding, we will further accelerate the strengthening and deployment of 5G networks.” Technologically speaking, SoftBank says it will automate and streamline various base station settings, communication tests, and radio wave emissions preparation, and will work on the early deployment of 5G networks.
SoftBank also said the funds would be “contributing to the solution of various social issues.” The company makes a connection between its 5G network and social issues because wireless is “indispensable social infrastructure for daily life.”
SoftBank said in a release: “In Japan, there are many social issues such as population decline, declining birthrate and aging population, and population concentration in urban areas.” The Japanese government has created an initiative called "Society 5.0" to solve these and other social issues.
SoftBank wants to help Society 5.0 with its 5G network, using it as the foundation for innovative services such as automated driving, telemedicine, and smart cities, as well as industrial digital transformation (DX).
As part of this new nine-year loan, company formulated a social loan framework that defines policies regarding the use and reporting of raised funds.
SoftBank Chief Executive Masayoshi Son is well-known for his belief in investing in socially responsible tech companies. He created the Vision Fund 1 in 2017. The Wall Street Journal today notes that the Vision Fund 1 and Vision Fund 2 have had their problems.
**This story was corrected to reflect that the social loan will be used to extend SoftBank's terrestrial 5G network and not its HAPS network.