JTOWER: Notice of conclusion of the agreement with Foxconn to develop a shared radio unit 5G mmWave

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April 13, 2022

Company Name:

JTOWER Inc.

Representing:

Director Representative

Atsushi Tanaka

(TSE Growth Code No. 4485)

Contact:

Ryōsuke Nakamura

Managing Director, Financial Director

Notice of reaching agreement with Foxconn to develop shared 5G mmWave radio unit

We have entered into an agreement with Foxconn Technology Group (headquartered in Taiwan, “Foxconn”) to develop a 5G mmWave shared radio unit.

For more details, please see the attached press release.

As stated in the “Financial Guidance Revision Announcement” issued on February 8, 2022, this transaction is expected to result in an investment of JPY 290 million for the development of the shared radio unit in FY03/ 2023. However, the impact on the revenues of the financial year 03/2023 is minor and there is no impact on the results of the financial year 03/2022.

April 13, 2022 JTOWER Inc.

JTOWER and Foxconn have reached an agreement to develop a shared radio unit compatible with 5G millimeter waves

– Compliant with O-RAN specification and compatible with 4 MNO spectra

We aim to launch commercial service within 2H of FY2022-

JTOWER and Foxconn Technology Group (headquartered in Taiwan, “Foxconn”) have entered into an agreement to develop a shared radio unit for 5G millimeter wave (28GHz band) assigned to each MNO. The shared use of a 5G millimeter wave compatible radio unit is a pioneering initiative in the industry. We aim to launch commercial service within 2H of FY2022.

■Development context

Since the launch of commercial 5G services in March 2020, MNOs have accelerated the development of 5G base stations. Starting with the introduction in the Tokyo Metropolitan Government Headquarters building, we aim to expand the 5G infra sharing solution compatible with Sub6 frequency bands.

Meanwhile, among 5G bands, millimeter wave can take full advantage of 5G, high throughput, low latency and mMTC (massive Machine Type Communications), requiring proactive use in the future. However, due to the high frequency band, radio waves are sensitive to obstacles and require more base stations.

■Realization of radio unit sharing

The infra-sharing solution we have provided so far has been the sharing of sites, antennas and MU/RU (the relay device connected to the radio unit of each MNO). The shared radio unit corresponds to the bandwidth of 4 MNOs and has the function of the radio unit which has been installed by each MNO so far and can share these functions. With the realization of radio unit sharing, the installation of the radio unit by each MNO is no longer necessary in places where the shared radio unit of JTOWER has been installed. This will allow us to provide additional values ​​to MNO such as additional CAPEX and OPEX reductions.

[Reference: Comparison of Radio Unit Sharing with Previous Sharing]

*CU: Central Unit、DU: Distributed Unit

■Features of the new shared radio unit

The shared radio unit, for which we entered into the development agreement with Foxconn, is compatible with millimeter waves (28 GHz band) allocated to 4 MNO. In addition to being compliant with the O-RAN Alliance (Open Radio Access Network Alliance) specification which promotes Open RAN (which enables the interconnection of different products from telecommunications equipment vendors), the specification is also designed to reduce the size and weight of equipment. We provide installation in a wide range of indoor and outdoor locations, including concrete poles, utility poles, signs, smart poles (one of our solutions) and inside buildings, and we intend to contribute to the flexible installation of base stations.

We predict 5G will drive the transformation of industrial foundations, including not only connectivity for everyday communications, but also healthcare, transportation and manufacturing platforms. Based on our background and know-how, we will further strengthen our operating system to contribute to the development of an efficient 5G mobile network.

【Reference: the image of the device and installation】

GPS

* This image will be the current look and can be changed

<About JTOWER>

JTOWER Inc. was founded in June 2012 as the first infra sharing company in Japan. Focused on indoor infra-sharing solutions that consolidate mobile networks inside the building, we extend the business domain to outdoors such as tower sharing in rural areas and smart poles in urban areas . We are developing a wide range of services for the future under the vision “Japan’s infra sharing services lead the world”.

https://en.jtower.co.jp/

Established in Taiwan in 1974, Foxconn is the leading technology solutions provider and continuously leverages its software and hardware expertise to integrate its unique manufacturing systems with emerging technologies. The Group has extended its capabilities not only to the development of electrical appliances, digital health and robotics, but also to AI, semiconductors and next-generation communication technologies, which are essential to drive its long-term growth strategy and the four main pillars of its products: Products, Enterprise Products, IT Products and Components and Others.

https://www.foxconn.com/en-us/

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