Sunday, May 12, 2024

KDDI and Softbank expand shared 5G network buildout

In a significant move to bolster Japan's 5G infrastructure, KDDI and SoftBank have confirmed their discussions on expanding the collaborative efforts under their joint venture, 5G JAPAN Corporation. Originally focused on rural areas, the companies are now considering expanding their joint 5G network initiatives nationwide. The venture, which also looks into the mutual use of existing 4G base station assets alongside 5G technology, aims to significantly enhance network availability and efficiency across Japan.

This expansion is not just about widening the geographical coverage but also includes broader strategic goals. By the fiscal year 2030, KDDI and SoftBank aim to establish 100,000 base stations each, aiming for substantial capital expenditure savings of around 120.0 billion yen per company. This initiative is seen as a crucial step towards enhancing Japan's international competitiveness by providing robust 5G connectivity that can empower various industries, foster regional revitalization, and boost national resilience.

Highlights:

  • Nationwide Expansion: Initially focusing on rural areas, the collaboration through 5G JAPAN is set to expand to a national level, enhancing connectivity across the country.
  • Utilization of 4G Assets: The companies plan to leverage not only 5G but also existing 4G base station assets to optimize their network infrastructure.
  • Significant Cost Reductions: By 2030, KDDI and SoftBank aim to build 100,000 base stations each, with anticipated capital expenditure savings totaling 120.0 billion yen per company.
  • Industrial and Regional Development: The expansion of 5G networks is expected to play a key role in Japan’s industrial development and regional revitalization, improving overall national resilience.