KDDI Corp of Japan has agreed terms with Tokyo Electric Power Co (Tepco) to acquire the latter’s fibre-optic communications business in January 2007, reports The Nihon Keizai Shimbun. Under the deal, KDDI will issue new shares to Tepco valued at more than JPY100 billion (USD847 million) to pay for the deal, the paper said. KDDI will purchase Tepco’s fibre-optic network in the greater Tokyo area, including its local access networks into homes and businesses, and will also assume control of the 300,000 or so customers using Tepco’s optical communications service. Tepco is currently the fifth largest fibre-optic communications service provider and KDDI is number six, with around 170,000 subscribers. Once the transaction is completed Tepco will own about 8% of KDDI, up from 4.8% currently, which will be the new fourth largest provider behind NTT East, NTT West and Usen Corp.