KDDI Corporation and SoftBank Corp. Expand Scope of Collaboration for Joint Build-out of 5G Networks

KDDI Corporation
SoftBank Corp.

KDDI Corporation ("KDDI") and SoftBank Corp. ("SoftBank") announced that on May 8, 2024, they agreed to begin discussions to consider expanding the scope of their collaborative initiative for jointly building out 5G networks in Japan through their joint venture 5G JAPAN Corporation ("5G JAPAN"), which has been implementing this initiative. The companies agreed to consider expanding applicable coverage areas from rural areas to areas nationwide [1] and to explore the mutual utilization of 4G base station assets, in addition to the current scope of 5G assets, among other initiatives. By expanding the scope of their collaboration, KDDI and SoftBank will aim to jointly build out a total of 100,000 base stations each by the fiscal year 2030 (FY2030, the year ending March 31, 2031) and achieve total capital expenditure cost reductions of 120.0 billion yen, respectively.

KDDI and SoftBank are aiming to enhance Japan's international competitiveness by establishing 5G networks that empower all industries, thereby contributing to its industrial development, regional revitalization, and national resilience. As part of this initiative, both companies established a joint venture, 5G JAPAN, on April 1, 2020. Through infrastructure sharing and the mutual utilization of base station assets owned by both companies, KDDI and SoftBank have been collaborating to accelerate the adoption of 5G networks in rural areas that are grappling with the digital divide. Through 5G JAPAN, KDDI and SoftBank have jointly built out over 5G 38,000 base stations each, resulting in capital expenditure cost reductions of 45.0 billion yen for each company [2].

Building on these achievements, KDDI and SoftBank will begin considering expanding the scope of their collaboration within 5G JAPAN to further accelerate the adoption of 5G in Japan and reduce costs. In addition to expanding network coverage areas and technologies, they plan to explore standardizing construction specifications, such as those used for building 5G and 4G base stations, and the joint procurement of equipment. They will also aim to commence various technology discussions and trials in FY2024, with the goal of fully expanding their collaboration scope from FY2026.

KDDI, SoftBank, and 5G JAPAN will continue to strengthen their cooperation and advance initiatives that enhance Japan's resilience and improve its international competitiveness.

As comprehensive telecommunication service providers, KDDI and SoftBank are committed to ensuring the provision of stable communication services to the greatest possible extent. Both are working to establish mechanisms that enable swift recoveries in the event of communication outages and disasters, with the aim of restoring communication services as quickly as possible. KDDI and SoftBank have been cooperating in providing mutual backup services during communication outages and disasters, and going forward they will also consider collaborating on network resilience measures that enable rapid restorations of disrupted communication services.

■Base station joint build-out initiatives to date and new initiatives

	Initiatives to date (FY2020 to end of FY2023)	New initiatives (to end of FY2030)
Area	Rural areas	Nationwide [1]
Network	5G only	5G, 4G
Number of base stations (per company)	Over 38,000 [2]	100,000 [3]
Capital expenditure cost reductions (per company)	45.0 billion yen [2]	120.0 billion yen [3]