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BT and KDDI Sign Joint Venture Agreement in Japan
— JV targets Japan's growing market for global managed network and global outsourcing services —


TOKYO/HONG KONG/LONDON, 26 June 2006 -- BT, one of the world's leading providers of global communications solutions and services, and KDDI, Japan's second largest full service telecoms operator, today announced a 50:50 equity joint venture at a ceremony in Tokyo attended by Andy Green, Chief Executive Officer of BT Global Services and BT main board member and Tadashi Onodera, President and Chairman, KDDI. Under the JV, the two companies plan to leverage each other's strengths to offer global managed services and network-centric outsourcing solutions to Japanese multi-national companies.

Andy Green said: "As the world's second largest corporate market, Japan is high on BT's priority list, and with good reason. Industry reports estimate the size of the current outsourcing market in Japan at approximately US$90 billion [1], twice the size of the rest of Asia Pacific markets combined. Furthermore, the challenges of managing global networking technology, coupled with greater demands on performance, reliability and security, are projected to drive significant growth for network outsourcing [2].

"The joint venture agreement with KDDI is a perfect fit to address this market demand, with BT bringing its global capabilities and proven outsourcing track record, and KDDI contributing local relationships, capabilities and focus on the Japanese market. BT Japan's and BT Infonet Japan's existing customers will be serviced by the JV. In addition, the JV will bring an extended range of service possibilities benefiting companies headquartered in Japan with international operations."
Upon launch, the JV will have approximately 100 employees backed by the full corporate resources of BT and KDDI including R&D, IP-based services, financial strength and true global scale.

Tadashi Onodera commented: "A current trend of our customers is to move towards contracting for global solutions to satisfy their network and information technology needs. Harmonizing the resources and know-how of BT's global services with the experience KDDI has built up over many years of providing Japan domestic and international services to our Japan clients will, I am convinced, result in a total global solution that will meet their extremely high expectations."

While the majority of BT's business and resources in Japan will be transferred to the JV, the company will continue to provide carrier, financial and technology services directly.

[1]  Gartner Dataquest November 2005- Outsourcing Worldwide Final Forecast (includes IT Outsourcing, BPO and IT Services Outsourcing)
[2]  Gartner — The Future of Outsourcing May 2006

About KDDI Corporation
KDDI is a diversified telecommunication operator formed by the merger of DDI, KDD and IDO in 2000, and is the only domestic company that provides both mobile communication service and broadband service. The number of subscribers to the mobile phone services under the au and Tu-Ka brands is over 25 million, and fixed-line subscribers (MyLine) is approximately 7.2 million [3].

The KDDI group companies have turnover of 3,060 billion yen.

At KDDI, aggressive improvement of communications environment in preparation for the coming ubiquitous network society is underway and KDDI is aiming to become a "ubiquitous solution company" which provides high value-added solutions.

For more information, please visit

[3]  Above data is current as of 31 March 2006

About BT
BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2006, BT Group's revenue was £19,514 million with profit before taxation of £2,040 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

A wide selection of BT images are available for download via the image library at

News Releases > 2006
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