Core
Based on reliable, high-quality 5G communications, KDDI will promote data-driven practices and social implementation of generative AI, creating new value with our partners and accelerating the enhancement of the power to connect.
Vision & Strategies Satellite Growth Strategy
With a focus on 5G communications, data-driven practices, and generative AI, KDDI will leverage the telecommunications infrastructure underpinning customer contact points, and accelerate business growth by providing value-added services in the growth areas of DX, finance, and energy. Life transformation (LX) encompasses five areas of future growth, which are Mobility, Sports/Entertainment, Web3/Metaverse, Healthcare, and Space. In addition to aiming for business expansion, KDDI will promote future-oriented initiatives that lead to the sustainable growth of society through business, and strive to realize KDDI VISION 2030, which is focused on "the creation of a society in which anyone can make their dreams a reality."
Based on reliable, high-quality 5G communications, KDDI will promote data-driven practices and social implementation of generative AI, creating new value with our partners and accelerating the enhancement of the power to connect.
KDDI has around 94,000 base stations for 5G communications, which is the basis of growth of the Satellite Growth Strategy. About 39,000 of such 5G base stations operate on the Sub6 bands (3.7 GHz and 4.0 GHz), which are new frequency bands that achieve faster large-capacity 5G communications (largest number of Sub6 base stations in the industry*). The easing of the satellite interference conditions has led to an expansion of Sub6 coverage between the period from April to May 2024 by 2.8-fold in the Kanto region and by 1.5-fold nationwide.
This made faster large-capacity 5G communications available to a wider range of customers not only in their usual sphere of activities, but also wherever they go.
KDDI will continue to deliver 5G experiences to customers while stepping up the quality of communications.
KDDI is taking full-scale measures to implement its new vision for data utilization: the Data Collaboration Concept.
We provide a system for sharing and analyzing data not only within the KDDI Group, but also between different enterprises while protecting personal and confidential information.
Through promoting collaborations by sharing data in different industries and business fields, KDDI provides new value to society and enterprises.
Through combined use of KDDI's communication platform and our partners' and startups' expertise, we will together accelerate the development of generative AI platform.
KDDI will build a large-scale computation platform for developing AIs that need massive computation, and develop generative AI models on that platform. As a platform for using AIs that need low latency, we will deploy computational resources for 5G MEC* systems in order to establish an environment that offers comfortable application of AIs.
We plan to offer this computation platform to our partners and startups once it is ready, as part of our mission to facilitate co-creation of businesses and services using generative AIs.
As business areas that drive our corporate growth, we will focus on the three domains―digital transformation (DX), finance, and energy―and work on collaboration with our partners while maximizing synergy with our telecommunications business as part of our efforts to accelerate growth.
On the foundation of KDDI's network and infrastructure platforms, we are building on added values in AI and digital technologies such as our unique strengths in IoT-related services and data centers as our growth areas, aiming for a double-digit annual average growth rate in operating income. Through supporting digital transformation in small and medium enterprises and local government, KDDI will expand its contact points with customers.
In order to contribute to the business growth and social responsibility goals of our corporate customers, we launched WAKONX, a new business platform for the AI age. This platform provides a suite of AI-embedded services and solutions optimized for each industry, from the design and construction of optimal networks to the accumulation, integration, and analysis of inter-company data over large-scale computing infrastructure.
WAKONX
KDDI launched a new business platform that
keeps evolving based on KDDI's many years of
experience and expertise in the telecommunications business.
Through co-creation with partner companies, KDDI is building platforms for individual industries, such as logistics and warehousing, broadcast and media, and so on, and providing them as solutions.
Nexa Ware―a joint venture incorporated in 2024 with TSUBAKIMOTO CHAIN CO.―provides vendor-free "next-generation logistics warehouse automation solution, promoting digital transformation that achieves better warehousing efficiency and optimization.
For digital transformation in broadcast and media industries, we are working on delivering video-related solutions that use Sony Corporation's communication devices for video transmission and KDDI's 5G standalone (SA) network.
We will further advance our joint efforts with partner companies and mobilize our technical capabilities to contribute to spurring digital transformation across industries.
KDDI's finance business offers to customer attractive services that integrates communications and finance, through which it promotes growth in the finance business while aiming to achieve reciprocal and mutual growth of the finance business and telecommunications business.
As one of such efforts, the au Money Activity ("Mane-Katsu") Plan, was released in September 2023 as a rate plan for smartphone users that combines communications and finance perks, which is a first attempt in the mobile phone industry. The Money Activity plan has been well-received by many customers and is contributing to increased presence of the au brand and an expansion in the use of au PAY Cards, au Jibun Bank, and other financial services.
We will continue to improve data linkage with communications services and maximize the synergy of communications and finance businesses.
Through "Communications x Finance" offerings such as the au Money Activity Plan, we promote the linkage and cross use of the wide range of functions and services offered within our financial group to customers who have used KDDI Group's financial services.
We will continue to work on creating new values, including expanding contact points with customers and providing products with a competitive edge. Through further promoting cross use within the financial group to expand our customer base of each finance business operator, we aim to deliver to more customers the benefits of digital finance that can be completed over a smartphone and improve customer engagement.
au Energy & Life Inc. provides the household electricity service au Electricity ("au Denki"), which is used by approximately 3.5 million households nationwide.
The company also started providing the Home Power Station ("Jitaku Hatsudensho") Service in July 2024, targeting customers living in Tokyo. This service offers customers solar panels and a storage battery free of initial installation costs and monthly rates, as well as generated power at discounted prices.
Through the provision of services aimed at realizing a decarbonized society, we will continue to enrich daily life and create a future lifestyle for people, thereby contributing to the realization of a sustainable society.
ENERES Co., Ltd. supports enterprise customers in addressing the challenges of decarbonizing their power usage by combining multiple services to provide solutions tailored to each customer.
Furthermore, au Renewable Energy Inc. is advancing KDDI's own decarbonization efforts by developing and operating renewable energy power plants, primarily focusing on solar power, and supplying the generated electricity to KDDI's base stations, communication buildings, and data centers.
By supporting the decarbonization of enterprise customers and promoting KDDI's own decarbonization efforts, we contribute to the preservation of the global environment as well as the sustainable growth of society.
To respond to the IoT society, new technologies, and diversified consumption, we defined the five areas of life transformation (LX) aimed at further growth.
While utilizing our strengths in communications and new technologies, we aim for further business expansion through partnering to innovate customers' lifestyles.
KDDI SmartDrone Inc. achieves safe remote, long-distance drone flights by using mobile communications and an operating control system.
In December 2023, the company entered into a capital and business alliance with Japan Airlines Co., Ltd. to increase collaboration toward the integration of drones into social infrastructure.
In May 2024, the company formed a business and capital partnership with Skydio, Inc., the largest U.S. manufacturer of autonomous drones with AI-powered flight control. This partnership led to the creation of innovative use cases by KDDI SmartDrone as a top runner in inspection, surveillance, and disaster relief solutions, accelerating resolution of social issues. As Skydio's primary partner, KDDI SmartDrone also engages in global expansion of the drone business.
Toward the future, we aim to expand applications, including social infrastructure inspection business using radio waves, and disaster relief and rescue operations by remote control using Starlink.
Skydio's autonomous drones with AI-powered flight control: Skydio X10
Amid the expansion of data-driven businesses involving IoT and DX in diverse industries throughout the world, the mobility industry is seeing momentum especially in connected cars and connected mobilities solutions.
KDDI utilizes the global communications platform to ensure reliable, quality communications at all parts of the world, supporting global expansion of the connected services that expand the connection between people and cars alongside automobile manufacturers in Japan.
In 2024, KDDI established KDDI Spherience, LLC, a new firm in the United States, aimed at further expanding the connected business. We will continue to support the application of connected solutions at various automobile manufacturers both in Japan and abroad.
In the future, we will promote problem solving in the mobility domain at large through the WAKONX business platform.
KDDI uses Starlink, developed by Space X, to build a "connected" environment in various settings as part of its undertakings in creating new customer experience and value.
In the wake of the 2024 Noto Peninsula Earthquake that hit the area in January 2024, in cooperation with Starlink Japan G.K., Space X's subsidiary in Japan, KDDI provided 350 Starlink devices to shelters in the Noto Peninsula, Ishikawa Prefecture, free of charge and collaborating with relevant government agencies and local governments, for use by disaster victims and people engaging in rescue and recovery activities.
We aim to start the provision of a direct communications service between au smartphones and the latest satellites. By stretching au service coverage across the entirety of Japan, including mountainous regions and remote islands, which are currently unable to reach by 5G or 4G LTE, KDDI will deliver "Connecting the Unconnected, wherever you see the sky."
KDDI is working towards solving social issues and innovating life on the earth from outer space.
In May 2024, KDDI launched the MUGENLABO UNIVERSE, which is a co-creation program that aims to solve terrestrial problems through collaborative efforts of startups and large enterprises by using space.
KDDI supports the provision of diverse demonstration environments, such as digital space replicating outer space and low orbit, as well as matching up startups that have new technologies and business ideas with larger enterprises that are looking to start new business development using space.
Through this program, KDDI pursues collaborative space businesses with and between startups, large enterprises, and experts in addition to solving social issues globally by applying space technologies.
The "αU" metaverse/Web3 service offers to users the αU wallet for managing NFT and crypo-assets, the αU market as a beginner-friendly NFT marketplace, the αU metaverse for enjoying entertainment experiences, and the αU place for shopping at virtual shops that resemble brick-and-mortar stores.
The Open Metaverse Network, which was launched in March 2024 as the largest metaverse alliance in Japan, can propose and support optimal platforms tailored to the needs of companies and local governments.
We will continue to work with domestic and international partners to promote Web3 services, develop creator economy, and support the use of metaverse by companies and local governments, thereby contributing to the development of the whole Web3/metaverse industry.
Through promoting the new Satellite Growth Strategy, KDDI will implement initiatives that provide diverse accessible services nationwide and internationally toward the future and lead to the sustainable growth of society.
As we envision in KDDI VISION 2030, KDDI focuses on "the creation of a society in which anyone can make their dreams a reality" through such efforts.
In its overseas initiatives, KDDI contributes to the sustainable growth of countries and the improvement of people's lives by providing communications services as social infrastructure and value-added services.
In Mongolia, Mobicom Corporation, a KDDI Group company with No.1 share in the domestic mobile market, will contribute to the development of digital society by providing value-added services such as finance and video streaming services and educational support to young people.
In Myanmar, we will strive to maintain social infrastructure which is essential for the people through supporting Myanma Posts & Telecommunications (MPT).
Additionally, we will deliver high-quality and seamless communications services to customers who travel from Japan to overseas, from overseas to Japan, and between different countries internationally, and will continue to work toward enhancing our customer experience.
Telehouse, our global data center, manages and maintains equipment entrusted by our customers on an around-the-clock basis. Its operation covers more than 45 sites in over 10 countries. With more than 30 years of experience in the business, it has been chosen by many customers thanks to its reliability and service quality, as well as its reputable connectivity to leading Internet exchanges (IX), telecom carriers, cloud business operators, and much more. Telehouse also features power-saving air conditioning facilities. We are aiming to switch over power use to 100% renewable energy by fiscal 2025.
The data center also hosts the platform for WAKONX*, a new business platform for the AI age. KDDI will promote the development of data centers that contribute to the expansion of our customers' businesses.
In February 2024, KDDI entered into a capital and business partnership agreement with Lawson, Inc. to create new consumer value by integrating "digital," "real-world," and "green" elements into Lawson's business, which focuses on convenience stores.
KDDI will respond to diversified customer needs, labor shortage, and other business issues by means of AI- and DX-driven assistance to contribute to Lawson's business growth. We also aim to strengthen customer contact points via real-world store networks at a total of 16,800 sites owned by both companies, through which we will deliver convenient and beneficial services.
KDDI also aims to improve Lawson's store function as local infrastructure through environmental impact reduction and disaster preparedness initiatives based at Lawson stores, as part of its efforts to achieve sustainable society.
JCOM Co., Ltd. ("J:COM"), the largest CATV and broadcast program provider in Japan, delivers cable TV, Internet, telephone, and other living-related services, as well as a diverse range of video content from Japan and abroad, to 5.68 million households through its CATV business consisting of 11 subsidiaries and 65 stations. J:COM also provides solution services to CATV business operators in Japan, using J:COM services and assets such as communications systems and equipment and set-top boxes (STB).
KDDI will continue to contribute to co-creation in local communities by partnering with regional CATV business operators through J:COM and increasing customer contact points, aiming to improve customer services at a local level.
With the aim to address many local issues and promote sustainable initiatives, KDDI engages in building business models and develops DX and educational environments aimed at solving such issues together with startups and other companies in the region, local government, and local people. For aspiring startups and local companies engaging in local issues, KDDI also aims to support and contribute to their growth through investment from the KDDI Regional Initiatives Fund, a corporate venture capital, and providing KDDI's resources, techniques, and know-how.
KDDI will co-create "the future of communities" together with local people.
Overview of KDDI's vision of regional co-creation
KDDI's efforts in open innovation, as well as business collaboration and co-creation with startups, are contributing to medium- to long-term growth of startups together with the application of KDDI's assets.
KDDI ∞ Labo, now the largest business co-creation platform in Japan, ranked number one for seven consecutive years in the Innovative Major Companies Ranking, announced by the Innovation Leaders Summit executive committee and the Ministry of Economy, Trade and Industry.
SORACOM, INC., which joined the KDDI Group in 2017, honed its IoT business and successfully made its listing on the Growth Market of the Tokyo Stock Exchange in 2024 via swing-by IPO. The company is currently on a momentum for further business growth and global expansion.
KDDI will continue to focus on efforts toward startup support and business co-creation between leading companies and startups, facilitating mutual growth.
KDDI provides and supports educational services intended for children as part of its contribution to cultivating community leaders for the next generation.
KCJ GROUP INC. operates KidZania (activity park where children can experience different jobs and services), and AEON CORPORATION offers language schools for children. The KDDI Group also engages in personnel development for the future of local communities through providing entrepreneurship education and leadership cultivation that equip participants with the knowledge, skills, and attitude to voluntarily take on challenges to find social issues and address them, as well as cooperate with others to explore solutions.
Through providing diverse learning opportunities, KDDI will continue to contribute to the cultivation of leaders that bolster the sustainable growth in the future society.
