KDDI Joins Hands with Rakuten, Agrees to Lease Network


Tokyo, Nov. 1 (Jiji Press)--Major Japanese mobile phone carrier KDDI Corp. <9433> said Thursday that it has tied up with Rakuten Inc. <4755> and will help the cybermall operator enter into the domestic mobile communications market as a new carrier.

Under the alliance, KDDI, the operator of the "au" mobile services, will lease its network to Rakuten so the firm can provide customers throughout Japan with the fourth-generation Long-Term Evolution, or 4G-LTE, high-speed connection services when it starts its mobile phone business in October 2019.

The two firms will also deepen their partnership in logistics and payment service areas.

KDDI President Makoto Takahashi said at a press conference that "now is a time in which we need huge capital investment costs" for 5G telecommunications and the Internet of things.

On his reason to join hands with a future industry rival, Takahashi noted the importance of cooperating in utilizing each other's resources.

[Copyright The Jiji Press, Ltd.]

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