Makoto Takahashi, president, Corporate & Marketing Communications at KDDI, has revealed the company’s 5G network expansion and growth strategy.
KDDI said it will expand the number of 5G base stations to 10,000 stations by March 2021 and 50,000 stations by March 2022. KDDI’s population coverage will reach 90 percent by March 2022 — covering all 47 prefectures.
KDDI will be using existing frequencies to expand 5G service areas. Frequencies included 28 gigahertz band, 3.7 gigahertz and 4.0 Ghertz. KDDI will be using existing frequencies 700 megahertz and 1.7 gigahertz in stages to expand coverage and service areas.
KDDI is planning Capex of about JPY610 billion this year. KDDI, as part of Accelerate 5.0 strategy, will be centered on 5G. KDDI is promoting 7 technologies centering on 5G.
“There are five topics I would like to cover, 5G for everyone, multi-brand strategy, KDDI Accelerate 5.0 and how we aim to expand growth fields and achieve medium-term targets,” Makoto Takahashi said.
KDDI aims to offer 5G for everyone. KDDI said au’s smartphone models will be 5G capable and KDDI will have a broader lineup of products, ranging from high-end to middle-range models.
KDDI has already launched iPhone capable of 5G in Japan.
The telecom operator did not reveal the number of 5G subscribers on its 5G network. There is no growth in ARPU after the launch of 5G services in Japan.
KDDI’s operating revenue decreased 1.1 percent to ¥2,537,196 million during the six-month period ended September 30, 2020 mainly due to a decrease of handset sales revenues despite of increase of revenue in Life design domain.
Operating income of KDDI rose by 6.4 percent to ¥588,763 million mainly due to a decrease of expenses for handset sales and an increase in gross profit of energy business.
Profit for the period attributable to owners of the parent increased by 7.3 percent year on year to ¥372,899 million mainly due to an increase of operating income.