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KDDI, Softbank team up on rural-area 5G network development

  • April 2, 2020
  • , Jiji Press , 9:52 a.m.
  • English Press

Tokyo, April 2 (Jiji Press)–KDDI Corp. <9433> and Softbank Corp. <9434> have set up a joint venture to promote the development of rural-area infrastructure for fifth-generation, or 5G, large-capacity ultrahigh-speed mobile communications services.

Through the new company, set up Wednesday, the two Japanese mobile carriers will accelerate the establishment and the sharing of 5G base stations in rural Japan.


KDDI and Softbank hope to pursue cost competitiveness through the collaboration, as they face the challenge of securing profitability in rural areas with fewer users in their efforts to achieve the nationwide penetration of 5G services, which are currently available only in some urban areas in the country.

The fifty-fifty joint venture, called 5G Japan Corp., is capitalized at 500 million yen, according to Wednesday’s announcement.


KDDI and Softbank aim to have their 5G services available for users across Japan within several years.

Last year, the two companies started examining how much their partnership can help reduce costs and shorten construction periods for 5G base stations in Asahikawa in the northernmost Japan prefecture of Hokkaido, Narita in Chiba Prefecture, east of Tokyo, and Fukuyama in Hiroshima Prefecture, western Japan. They have confirmed certain collaboration effects.

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