Japanese operator KDDI announced an alliance with shareholder Toyota to jointly develop connected car technology and device platforms built on 4G, 5G and 6G, with the deal also including a fresh JPY52.2 billion ($498.7 million) investment by the automotive giant into the operator.
In a statement released alongside KDDI’s fiscal H1 results, the operator said the agreement would lead to the companies making joint developments beyond their core businesses, with an eye to a “future society in which towns, homes, people and cars are all connected”.
The partnership aims to develop IoT platforms, operating systems for management of the next generation of connected cars, security systems and innovations addressing “social issues arising between urban and rural areas and regional communities using big data”.
As of end-September, Toyota owned a 12.95 per cent stake in KDDI: the additional cash injection will take this to 13.74 per cent when the transaction completes in late January 2021.
In its fiscal H1 (to end-September) the Japanese operator reported a 1.1 per cent year-on-year decrease in operating revenue to JPY2.5 trillion. Net profit attributable to owners of the parent increased 7.3 per cent to JPY373 billion.
The company noted a decrease in revenue from handset sales and overall earnings from its mobile unit was offset by its Business Services and Life Design segments, the latter of which covers provision of services including digital content.Subscribe to our daily newsletter Back