KDDI Seeks Overseas M&A in Asia, ramping up smartphones in 2011, new president Tanaka-san 1st press conference http://bit.ly/eiMhau
KDDI Corp. is seeking mergers and acquisitions mainly in Asia to offer more consumer services in overseas markets, its new president said Wednesday, as the Japanese telecommunications operator looks outside of its saturated home market for further growth. KDDI is “in talks” with potential overseas partners, said Takashi Tanaka at his first press conference after officially becoming president at Japan’s second largest mobile phone carrier earlier in the day.
Tanaka, 53 years old, replaces Tadashi Onodera, who led the company since it was formed out of a merger of three companies in 2000. Onodera continues to serve as KDDI’s chairman. Tanaka said that half or more of the new handsets released in the first half of next fiscal year will be smartphones. Via WSJ.
- How are ten years of the
situation to date evaluated from the amalgamation, and how are ten years
of the future managed?
The age changes. The cellular phone shifted to 3G, it turned over, it
went ahead of another career, [ha] was caught, it preceded, advanced
services such as the packet fixed amount, the music download, and GPS
were provided, and au was chosen as the customer. It is caught up, and
afterwards, a fixed communication unites, too and the multi device, the
multi-network, and the multi youth will be achieved in another career in
the future though the change into a smart phone was not able to be
Ten years of the future are done without forgetting the challenging
spirit because an in-house vector is matched.
- How are the positioning in the
telecom industry of KDDI, the role in Japan, and the slogan of management
There is no change in the idea of bringing convenience to the people
and the society through the maintenance of the competitive setting.
In addition, it works so that the business domain may be expanded to not
only the communication but also the business in the surrounding, and not
only the country but also foreign countries become one segments.
- What situation will it become in
the future though KDDI started as NTT opposition axis ten years ago?
No business environment it that squeezes putting like the slogan
"The telephone of Japan is made cheap" at the inauguration
this time to one point becomes it. In the future, it will become a
company that runs a business by various domains.
It has great benefits to to the people continuously as NTT opposition
axis through the competition. Not only the communication but also a
high-ranking layer expands to the business frame.
- What is the strong point that the
telecommunications provider offers the multi device, the multi-network,
and the multi youth that even the player of another layer can offer?
Information has to the network and information on the
telecommunications provider like the location information etc. of the
cellular phone are strong points. Because stronger service can be
provided because the telecommunications provider cooperates with the
player of a high-ranking layer, such a business model is constructed.
- About when are concrete service and
the charge for achieving the multi device, the multi-network, and the
multi youth announced?
It will think whether you can show some business model next year.
Because the impact is large, the business model wrapped with a
high-ranking concept is necessary for the business model’s complete
- The attitude to capital investment.
Because KDDI exceeded the mountain for the frequency reorganization,
the amount of capital investment exceeds the peak, and it becomes a
right shoulder fall. Even if the investment of LTE will be generated in
the future, it is not the one to the right shoulder going up that
However, because the source of the power of the telecommunications
provider the technical improvement by the equipment competition and
capital investment has not changed up to now, necessary capital
investment is continuously done.
- Is there a grand design to the
The image service etc. are provided as a synergy effect creation and
contents of the contents use being offered with VOD and CATV in FTTH,
and it continues to this field, it makes efforts, and it works so far.
I want to talk about the future of a concrete content in the future
though the multi youth is achieved as a multi screen strategy on the
platform of Android.
Approach on foreign operations
- Is it concretely thought
about the business expansion to what market and the region?
It works by centering on the data center about a corporate market.
To be the approach around Asia, and clarified of the strategy of KDDI in
ten years, service for a new consumer is advanced.
- In the consumer business in the
sphere of Asia, is M&A executed?
The business is started up with a local player in the layer etc. of
the Internet in an Asian region through M&A. M&A is examined
with the matter base in regions other than Asia.
- The object of M&A in
Asia:Either the telecommunications provider or the contents entrepreneur.
It examines it in a high-ranking layer, the subordinate position
layer inclusion, and all layers.
- Are sales of foreign operations
piled on 200 billion yen or more by working on this foreign operations in
2008 though it is announced that overseas sales will be adjusted to 200
billion yen by 2013?
When the consumer business is included, it will change to a scale any
more because 200 billion yen makes a corporate business a base.
Concretely, I want to clarify it according to the announcement of the
accounts for the year ending March in 2011.
- To how much is the foreign
operations sales ratio that occupies it to overall sales increased?
The review is being advanced now, and I want to make the concrete one
public around next spring though the overseas sales 200 billion yen
achievement assumed to be a target in 2013 has come within the sweep.
- Is M&A advanced concretely?
It is not possible to talk about a necessary examination as well as
the past though it advances if it doesn’t decide it.
- The capital scale of M&A.
Each matter is judged. There is no frame.
Mobile communication business strategy
- How is the mobile
communication business rallied?
IS03 is assumed to be a chance of reversing. Because the smart phone
suitable for a Japanese market was turned on, it rises with the
ascending current by I S Series following this, and au with an energetic
exciting feeling is regained though there was a delay in the development
of a smart phone.
It becomes an employee united body reflecting and au becomes an
entrepreneur who is the nearest the customer though the other companies
is permitted to catch up from the self-conceit, and the customer
satisfaction measurement of J.D. Power has come in 2nd place.
- The operation cost might increase
with the wireless system to the multi.
Mobile WiMAX was about 100 billion yen, and the system was able to be
constructed up to population cover rate 60?70% though it was said that
it was necessary for nationwide development of 3G for one trillion yen.
Because the cost of the node is made cheap, two or more wireless systems
come to be put for one equipment, and the NW cost has fallen fast in LTE
that will be offered in the future, it is likely not to become a
It is a problem how to use the system from the cost, and does the usage
suitable for the feature of each wireless system. A fixed communication
network also matches, the increasing traffic is controlled on two or
more networks, and it offers it to the customer in the seamless.
Smart phone strategy
- How is a smart phone
located in the cellular phone and will it work in the future?
The ratio of smart phones in the lineup is increased to the next
period following the sale’s of IS03 having started well, and it
corresponds to the change in the smart phone market positively for the
A mid/long term, various devices are taken as slate PC into which the
ratio of smart phones is not simply increased but the communication
module is built is added to the lineup, and it works on the multi
- Is it thought the ratio of smart
phones in the lineup to make it to which extent?
The plan is being settled on about the entire next period now though
it thinks about the number of models more than the half as the first
half of the next period.
- How is it thought about the current
state of KDDI concerning a smart phone?
Time is still necessary for the other companies to catch up. It is
not possible to infiltrate the market if the lineup doesn’t become
complete though one device that doesn’t exist in the other companies was
able to be put out with IS03. However, it catches up without fail.