KDDI to buy TEPCO’s fibre-optic network for USD965 million

13 Oct 2006

Japan’s second largest wireless telecoms operator KDDI Corp is to acquire Tokyo Electric Power (TEPCO’s) fibre-optic network for JPY115 billion (USD965 million), in an effort to compete more effectively with former monopoly Nippon Telegraph & Telephone (NTT’s) internet business. According to Bloomberg News, the all stock deal will make KDDI Japan’s third largest provider of fibre-optic services in the country after NTT and Usen, and will allow it to reduce its dependence on other carriers’ networks and benefit from lower leasing fees. KDDI has for some time been looking for ways to expand its presence in the broadband internet and mobile markets in order to compete with NTT and its mobile arm, NTT DoCoMo.