KDDI buys PoweredCom

14 Oct 2005

KDDI is set to buy ISP PoweredCom, in a share swap deal worth JPY127 billion (USD1.1 billion). The operator hopes that the move will enable it to compete more effectively with industry leader NTT at a time when the fixed line market faces growing competition from mobile and VoIP services. KDDI is also teaming up with PoweredCom’s parent company Tokyo Electric Power (Tepco) to offer fibre-optic services. Tepco and PoweredCom have a combined 160,000kms of optical fibre, and KDDI hopes the deals will free it from its reliance on NTT.

Japan, KDDI (au)