KDDI preps for the ‘AI-native society’

• The Japanese operator has unveiled its strategy for the three-year period that ends in March 2029 
• It is gearing up for the era when AI is ‘embedded in everyday life’
• Its approach is built upon its infrastructure ‘digital belt’, customer interaction and the hiring of next-gen talent 

Having laid the foundations with investments in its networks, customer touchpoints (including high-tech retail outlets) and AI infrastructure, Japanese telco KDDI has unveiled its strategy for the three years running from April 2026 to March 2029, and it’s all about AI. 

The operator has just reported its latest financial year, which ended in late March, noting not only that full year revenues increased by 4.1% to 6,072bn yen ($38.2bn) and operating profit increased by 1.1% to 1,099bn yen ($6.9bn) but that its previous strategic plan, which included the acquisition of a 50% stake in major Japanese convenience store chain Lawson and development of AI-enabled customer ‘touchpoints’ for its network of retail outlets, had been successfully concluded.  

It also unveiled its new strategic plan, which is built on the foundations of an updated communications network infrastructure, smart customer touchpoints and a focused human resources plan, all of which KDDI believes can deliver “AI-resilient and hard-to-replace value” that will attract and retain customers. 

This plan revolves around the expected emergence of an “AI-native society”, where AI is not just being used but is “embedded in everyday life”: This era will also coincide with the introduction of 6G, something for which KDDI is preparing with its strategy. 

KDDI refers to its national infrastructure plan – the construction of a national low-latency network and AI computing infrastructure – as its “digital belt” initiative. This involves the ongoing development of its data transport and access networks, the construction of AI datacentres, satellite ground stations and subsea cable landing points, the integration of low-earth orbit (LEO) satellite connectivity – KDDI has already launched its direct-to-device (D2D) service in partnership with Starlink – and the introduction of AI-enabled automation, something the operator has been working on with Ericsson. The telco intends to invest 1,200bn yen ($7.54bn) in its digital belt infrastructure over the next three years.   

By the time 6G is introduced, KDDI plans to be using 100,000 base stations across the country as “sensing hubs” that can deliver real-time data to its AI-enabled network management systems. 

With this supporting infrastructure and technology, KDDI’s aim is to develop “new businesses that enable AI-powered productivity and AI-enhanced lifestyles, starting from customer needs” that will help it to drive further sustainable revenue and operating profit growth in the coming years.  

- Ray Le Maistre, Editorial Director, TelecomTV