KDDI Corporation and SoftBank Corp. are currently in discussions to enhance their collaboration in jointly developing 5G networks. This initiative aims to bolster Japan's telecommunications infrastructure and accelerate the adoption of 5G technology across the country.
The companies’ collaboration is expected to expand from rural areas to encompass nationwide coverage, possibly transforming the connectivity environment for businesses and consumers throughout the country.
On April 1, 2020, KDDI and SoftBank launched a joint venture called 5G JAPAN Corporation. Since then, it has been leading the way in addressing the digital gap in rural regions by building more than 38,000 5G base stations for both KDDI and SoftBank. This collaboration is expected to lead to a reduction in capital expenditure costs for each company, totaling JPY 45.0 billion.
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Expanding the scope of their collaboration, the companies aim to collectively construct 100,000 base stations by fiscal year 2030. This ambitious endeavor is projected to yield significant capital expenditure cost reductions, totaling JPY 120 billion for each company, respectively.
Additionally, the partnership will not only prioritize the extension of network coverage, but also explore the shared utilization of 4G base station assets in addition to the existing 5G assets. The companies intend to optimize operations and achieve substantial cost reductions by using standardized construction requirements and looking into jointly procuring equipment.
KDDI and SoftBank are committed to accelerating the development of Japan’s telecom industry and providing robust communication services, especially during emergencies and disasters.
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