KDDI reveals 5G network growth strategy in Japan

KDDI has revealed the mobile operator’s 5G growth strategy in Japan. KDDI introduced au 5G service in the country in March aiming to improve ARPU.

KDDI said operating revenue rose 3.1 percent to ¥5,237.2 billion in the fiscal year ended March 31, 2020. KDDI’s operating income grew 1.1 percent to ¥1,025.2 billion and increased for the 19 consecutive years.

The company projects revenue of ¥5,250 billion (+0.2 percent) and an operating income of ¥1,030 billion (+0.5 percent) for the fiscal year ending March 31, 2021.

Earlier, NTT Docomo said its 5G coverage will encompass some 150 locations nationwide initially and then expand to all prefectures by June 2020. More than 500 cities are expected to have access to Docomo’s 5G service by March 2021.

Au 5G

KDDI in March 2020 began providing au 5G service in certain areas of 15 of Japan’s prefectures.

KDDI introduced four pricing plans for 5G-compatible smartphones and are in the process of releasing seven-models of au’s 5G-compatible smartphones, ranging from high-spec models with 8K high-resolution cameras to mid-range models.

KDDI has started promoting switch by offering 5G original plans at around 4G LTE prices in order to attract 4G customers to its 5G network.

KDDI in July launched the new payment plan for smartphone au data MAX Plan. This was Japan’s first plan with unlimited data in anticipation of the 5G era.

KDDI’s Kaetoku Program launched in February 2020 is designed to make the smartphones more affordable. It allows customers to deduct a buyback value of their choice from the phone purchase price used to calculate their monthly payments.

KDDI in January 2020 launched the Shibuya 5G Entertainment Project, including an XR experience booth utilizing 5G.

KDDI in March 2020 announced the launch of the video streaming platform TELASA by co-parent company with TV Asahi and the start of au 5G LIVE, a service that enhances the concert-viewing experience.

The number of IoT data transmission lines KDDI has provided to corporate customers since 2001 surpassed 10,000,000 in November 2019.

5G customers will receive up to ¥22,000 discount and kayutoka programs are available at au online shops, making them affordable.

Netflix, YouTube Premium, Apple Music, TELASA video and music content will be added under the ALL STAR plan in June this year. For au Smart Pass Premium, KDDI provides augmented experience, aiming to upsell with new prices and experience values that really utilizes 5G.

“We aim to grow value-added ARPU in addition to communications by enabling customers to switch to 5G and the resulting increase of data usage,” KDDI president Makoto Takahashi said.

Hitachi Transport System is migrating distribution center into 5G to enhance safety, quality and productivity together.

With San-Ai Oil aims to improve operational efficiency by using telecommunications and AI and started offering KDDI gas platform services to contribute to the maximization of CS and CX of gas subscribers.

 

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