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JBIC leads €800 million loan for 5G push in Germany
Loan will enable Japanese firms to use high-quality mobile network for overseas operations
Michael Marray   1 Jan 2025

Japan Bank for International Cooperation has led an €800 million ( US$832.67 million ) loan to United Internet in Germany.

Of the amount, JBIC is providing €300 million. It is also guaranteeing part of the loan, which is co-financed with Commerzbank ( Tokyo Branch ), BNP Paribas ( Tokyo Branch ), HSBC ( Tokyo Branch ), Mizuho Bank, and MUFG Bank.

United Internet is a European internet specialist that provides fixed-line and mobile telecommunication services, as well as cloud services.

The loan will allow the company to establish, through its listed subsidiary 1&1 AG, a 5G network based on the Open RAN technology in Germany, with multiple software products for fully virtualized mobile networks developed by Japanese technology firm Rakuten Symphony.

Open RAN is a standardized radio access network ( RAN ) that avoids vendor lock-in and enables interoperability with equipment and systems from various vendors.

Together with Rakuten Symphony, 1&1 has built Europe’s first fully virtualized mobile network based on the Open RAN technology, helping establish a safe and high-quality network environment in Germany.

Supporting overseas operations

The loan aims to support the development of infrastructure to enable Japanese companies expanding into Germany to utilize ICT ( information and communication technology ) in their local business operations.

The loan is provided within the framework of the Act for Partial Amendment of the Japan Bank for International Cooperation Act, which took effect from October 2023. This legal amendment has made loans available to eligible foreign companies that support infrastructure necessary for Japanese companies' overseas business.

The German government launched the 5G Strategy for Germany in July 2017, with the aim of rolling out 5G networks by 2025. The strategy promotes the release of the 5G frequency spectrum and the development of fibre optic cables.

At the 8th Japan-Germany ICT Policy Dialogue held in November 2024, the Ministry of Internal Affairs and Communications of Japan and the Federal Ministry for Digital and Transport of Germany recognized the importance of ensuring the safety of communication networks by using technologies such as Open RAN.

In the Infrastructure System Overseas Promotion Strategy 2025, the Japanese government underscores the importance of supporting overseas expansion in the digital sector by promoting the deployment of Japanese companies' products and systems abroad.

This includes ensuring secure and open 5G and related infrastructure, such as the Open RAN technology, which serves as the foundation for utilizing digital technologies. The loan aligns with the policies of both Japanese and German governments as it contributes to the expansion of 5G networks based on the Open RAN technology.