SoftBank and KDDI aim to jointly build a total of 100,000 base stations each by fiscal 2030.
Japanese telecommunications carriers SoftBank and KDDI have agreed to begin discussions on potentially expanding the scope of their ongoing collaboration to jointly build 5G networks in Japan through a joint venture, 5G JAPAN Co., SoftBank said in a statement.
Specifically, the companies plan to expand the applicable area from regional to nationwide, and to consider mutual use of 4G base station assets in addition to the current scope of 5G assets.
SoftBank and KDDI will expand the scope of their collaboration to jointly build a total of 100,000 base stations each by fiscal 2030 (ending March 31, 2031), aiming to reduce total capital investment costs by 120 billion yen ($771 million) each.
“SoftBank and KDDI aim to enhance Japan’s international competitiveness by building a 5G network that supports all industries, and contribute to industrial promotion, regional revitalization, and national resilience. As part of this effort, the two companies established a joint venture, 5G JAPAN, on April 1, 2020,” SoftBank said.
“SoftBank and KDDI have been working together to accelerate the deployment of 5G networks in rural areas suffering from digital divides through infrastructure sharing and mutual utilization of base station assets owned by both companies. Through 5G JAPAN, SoftBank and KDDI have jointly built more than 38,000 5G base stations each, achieving capital investment cost savings of 45 billion yen for each company,” the company added.
In addition to expanding the network coverage area and technology, the two companies plan to consider standardization of construction specifications for 5G and 4G base station construction and joint procurement of equipment. In addition, they will begin various technical discussions and trials during fiscal 2024, aiming to fully expand the scope of their collaboration from fiscal 2026 onwards.
“SoftBank, KDDI, and 5G JAPAN will continue to strengthen their collaboration and work to increase Japan’s resilience and improve its international competitiveness. As comprehensive telecommunications carriers, SoftBank and KDDI are committed to ensuring the provision of stable telecommunications services to the maximum extent possible. The two companies will work to build a system that will enable rapid recovery in the event of a communications outage or disaster, aiming to restore telecommunications services as soon as possible,” SoftBank said.
SoftBank and KDDI have cooperated in the past in providing mutual backup services in the event of communications outages or disasters, but going forward they will also consider collaborating on network fault-tolerance measures to enable rapid recovery in the event of a communications outage.