KDDI, Tepco agree to merge fibre-optic units

7 Apr 2006

KDDI Corp and Tokyo Electric Power Co (Tepco) have agreed to merge their fibre-optic network operations as they look to take on bigger rivals in Japan’s broadband industry. KDDI, Japan’s second largest telecom company by revenue, and Tepco are looking to amalgamate their fibre-optic businesses by 1 January 2007. The pair will begin due diligence immediately and hope to reach a final decision on a possible deal by September. If completed, the deal would create Japan’s fourth largest provider of fibre-optic communications services, behind NTT’s two regional units and Usen Corp.

Japan, KDDI (au)