KDDI's Status

The KDDI CORPORATION was established in October 2000 through the merger of DDI CORPORATION, a long-distance communications company; KDD Corporation, an international communications company; and IDO CORPORATION, which provided mobile communications. Thereafter, we expanded our business through mergers in both the mobile and fixed-line businesses.

As a result, KDDI has amassed a host of access lines. In the mobile category, these include 3G/LTE and WiMAX networks. In the fixed-line category, we have FTTH and CATV. The KDDI Group's customer base includes approximately 53 million mobile subscriptions [1] and around 8.5 million fixed-line broadband subscriptions [2]. We are leveraging this situation by promoting the "3M Strategy [3]."

• [1]

  Total for au + UQ

• [2]

  Total for FTTH + CATV pay multi-channel

• [3]

  3M stands for Multi-network, Multi-device, and Multi-use. Our growth strategy calls for the establishment of an environment that seamlessly provides a variety of content and services to customers through an optimal network that can be used anytime and anywhere, with a variety of devices, including smartphones and tablets.

• [4]

  Japan Cablenet Limited

• [5]

  UQ Communications Inc. (due to KDDI' s voluntary adoption of International Financial Reporting Standards (IFRS) from the fiscal year ending March 31, 2016, changing from an equity-method affiliate to a consolidated subsidiary)

• [6]

  Chubu Telecommunications Co., Inc.

• [7]

  Jupiter Telecommunications Co., Ltd.

• [8]

  Share among NTT DOCOMO, INC. (NTT DOCOMO), SoftBank Mobile Corp. (SOFTBANK MOBILE), and KDDI (au)

• [9]

  KDDI + ctc + OKINAWA CELLULAR TELEPHONE COMPANY (Okinawa Cellular)

• [10]

  J:COM + JCN

Mobile

As of March 31, 2015, au mobile subscriptions numbered 43.48 million, up 7.3% year on year and accounting for a 29.4% share of the mobile market, which has three major carriers.

Of this figure, in the Personal Services segment, which accounts for more than 70% of KDDI's consolidated operating revenues, smartphone penetration had risen to 54% (50% if limited to LTE).

UQ Communications Inc., an equity-method affiliate that provides WiMAX service and "WiMAX 2+" (compatible with TD-LTE) service using 50MHz bandwidth of frequency in the 2.6GHz band, reinforced its lineup of devices compatible with "WiMAX 2+", boosting its subscriptions significantly. As a result, as of March 31, 2015, its subscriptions totaled 9.54 million, a 137.8% year-on-year increase.

• [11]

  KDDI + Okinawa Cellular

• [12]

  (au LTE smartphones + au 3G smartphones) ÷ (au subscriptions minus data-only terminals, tablets, and modules)

Fixed-Line Broadband

As of March 31, 2015, FTTH subscriptions stood at 3.49 million, up 7.7% year on year and accounting for a market share of 12.5%.

In CATV, the industry's largest company and a consolidated subsidiary, J:COM, merged with the second-largest, JCN. Consequently, KDDI's market share led the industry. With the birth of the newly combined J:COM, household subscriptions numbered 5.05 million for the fiscal year ended March 31, 2015, giving KDDI a market share in multichannel services exceeding 50%.

By cross-selling FTTH and CATV services to the au customer base, we expect our customer base to continue growing.

• [13]

  JCN only for the fiscal years ended March 31, 2012 and 2013. J:COM + JCN for the fiscal year ended March 31, 2014. In line with the inclusion of JCN into the scope of J:COM's consolidation in December 2013, the method of calculating the total number of subscribing households has been unified to J:COM's standard.