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- FTTH business, and by continuing to reduce fixed costs, will aim to bring the entire Fixed-line Business into the black in FY 2011.3. This section introduces the initiatives being implemented by the Fixed-line Business for the future.
In January 2007, KDDI integrated the FTTH business of Tokyo Electric Power Company, followed by the consolidation of Chubu Electric Power Co., Inc.’s subsidiary, CTC, in April 2008. Thanks to these measures, it has become possible to flexibly expand the Company’s business in the Tokyo metropolitan and Chubu regions, using KDDI’s own access lines. The Company aims to improve profitability by promoting both the enhancement of its product appeal and cost containment, primarily in these two regions. On the product side, KDDI is promoting sales of its well-received “Giga Value Plan” in the Tokyo metropolitan and Sapporo area. The Company is also taking advantage of the video services that are FTTH’s strength, and will continue negotiations with a wide range of content providers to further enhance the current lineup of 5,000 VOD offerings and 45 channels of multichannel broadcasting. At the same time, KDDI is pushing ahead with development of technology that will make an environment for enjoying high-definition video a reality as well. In order to expand its marketing capabilities, KDDI is shifting to a broader network of sales channels, including telemarketing, door-to-door sales, and its au shops. Through this process, the Company aims to strengthen sales capabilities and rein in sales costs, while expanding the subscriber base by appealing “Giga Value Plan” as a core service.
Operating revenues at the JCN Group, a KDDI consolidated subsidiary that is expanding its operations in the Tokyo Metropolitan area, were ￥57.8 billion in FY 2009.3, and are expected to grow by approximately 1.3 times to ￥74.0 billion in FY 2010.3. Stations providing Cable-plus phones have steadily increased from 25 stations at the end of March 2007, and are expected to reach 100 stations by the end of March 2010.
JCN Group Revenues
(Billions of yen)
Growth in Number of Stations Affiliated With Cable Plus Phone
Expand to approx. 100
40 20 20 0
*1 Revenue in 9 months following consolidation as KDDI subsidiary *2 Includes JCN Kanto, Kawagoe Cablevision, consolidated upon acquisition of their stock in April 2009.
KDDI CORPORATION Annual Report 2009