In Short:
SoftBank and KDDI plan to expand their collaboration to jointly build 100,000 5G base stations each by 2030, with cost reductions of 120 billion yen. By standardizing construction specifications and procuring equipment together, they aim to streamline operations. Discussions and trials for this initiative will begin in 2024, with full expansion expected by 2026. The companies also prioritize ensuring stable communication services and enhancing Japan’s international competitiveness and resilience.
SoftBank and KDDI have agreed to begin discussions to consider expanding the scope of their collaborative initiative for jointly building out 5G networks in Japan. Through their joint venture, 5G Japan Corporation, established in 2020, the companies aim to extend coverage from rural to nationwide areas, excluding Okinawa Cellular, and explore the mutual utilisation of 4G base station assets, the operators announced in a joint statement on Wednesday. The collaboration will also focus on addressing cybersecurity challenges that may arise with the expansion of the 5G network. By pooling their resources and expertise, SoftBank and KDDI will work towards implementing robust security measures to protect the integrity and privacy of user data. This strategic partnership underscores the commitment of both companies to ensuring the seamless and secure integration of 5G technology across Japan.
Scope Expansion
By expanding the scope of their collaboration, KDDI and SoftBank will aim to jointly build 100,000 base stations each by fiscal year 2030, with projected capital expenditure cost reductions of 120 billion yen. This move is aligned with their goal to enhance Japan’s international competitiveness and contribute to industrial development, regional revitalisation, and national resilience.
Operational Streamlining
Through 5G Japan, KDDI and SoftBank have jointly built out over 5G 38,000 base stations each, resulting in capital expenditure cost reductions of 45 billion yen for each company. Now, KDDI and SoftBank plan to further streamline operations by standardising construction specifications, such as those used for building 5G and 4G base stations, and jointly procuring equipment.
Discussions and trials for these initiatives are set to commence in fiscal year 2024, with full expansion of collaboration scope anticipated by fiscal year 2026, the official release said.
Ensuring Stable Services
KDDI, SoftBank, and 5G Japan will continue to strengthen their cooperation and advance initiatives that enhance Japan’s resilience and improve its international competitiveness. Additionally, the companies are focused on ensuring stable communication services, with mechanisms in place for rapid recovery during outages and disasters, including mutual backup services.
