Japanese telecom giant KDDI has introduced a new three-year business strategy aimed at accelerating the development of AI infrastructure, intelligent network automation, and next-generation 6G connectivity. The initiative, named Power-to-Connect 2028, will run from April 2026 through March 2029 and represents one of the company’s most significant long-term technology investments to date.
The new strategy highlights KDDI’s vision of building a nationwide digital ecosystem powered by artificial intelligence, advanced telecom infrastructure, and satellite communications. As AI becomes increasingly integrated into communication networks and digital services, the company plans to strengthen its infrastructure capabilities while preparing Japan for the future era of 6G connectivity.
KDDI’s Vision for an AI-Driven Future
KDDI believes that artificial intelligence will become deeply embedded across every aspect of digital communications, customer services, and network operations. According to the company, AI will not only enhance consumer experiences but also transform the way telecom infrastructure is managed and optimized.
Under the Power-to-Connect 2028 plan, KDDI intends to focus on expanding its physical infrastructure assets, improving customer interaction points, and strengthening nationwide communication capabilities. The company also emphasized the importance of developing human talent and technological expertise to support long-term digital transformation.
This latest roadmap follows KDDI’s previous mid-term business strategy, which concentrated heavily on network expansion and AI-powered customer service initiatives. That earlier plan also included the company’s acquisition of a 50% stake in the convenience store chain Lawson, demonstrating KDDI’s broader ambitions beyond traditional telecommunications.
Massive Investment in the “Digital Belt” Initiative
One of the most important components of the new strategy is KDDI’s planned investment of 1.2 trillion yen over the next three years into what the company calls its Digital Belt initiative.
The Digital Belt project is designed to establish a nationwide low-latency communications environment and advanced AI computing infrastructure across Japan. The initiative combines multiple technology layers into a unified digital ecosystem capable of supporting future AI applications and next-generation mobile networks.
The Digital Belt includes several major infrastructure elements such as:
- Low-latency transport networks
- Advanced access networks
- AI-focused data centre infrastructure
- Subsea cable landing stations
- Satellite ground stations
- Nationwide telecom backbone systems
KDDI explained that this large-scale investment will create a foundation capable of supporting AI-enabled services for both businesses and consumers. The infrastructure is expected to improve data processing speeds, reduce network delays, and strengthen Japan’s overall digital connectivity.
The company’s presentation also highlighted the importance of integrating AI computing capabilities directly into telecom infrastructure. This approach is expected to support growing demand for real-time applications, cloud computing, edge computing, and intelligent digital services.
Growth Targets Under the New Strategy
KDDI has outlined several financial growth objectives as part of the Power-to-Connect 2028 plan. The company aims to achieve a 5% compound annual growth rate (CAGR) in consolidated operating profit during the three-year period.
For the fiscal year ending March 2027 (FY27-03), KDDI expects growth across several business segments:
- Telecom Core business growth of 3.7%
- Personal Growth segment increase of 10.3%
- Business Growth segment expansion of 18.0%
These projections reflect KDDI’s confidence that AI-driven infrastructure and digital services will become major revenue drivers in the coming years.
The company believes that combining telecom infrastructure with AI-powered platforms will create new business opportunities while also improving operational efficiency.
AI-Powered Network Automation Becomes a Major Priority
A central part of KDDI’s new strategy involves expanding the use of AI for network automation and infrastructure optimization.
Telecom operators worldwide are increasingly turning to artificial intelligence to manage growing network complexity, improve service quality, and reduce operational costs. KDDI is now accelerating these efforts by integrating AI into its commercial network systems.
The company stated that AI and automation technologies will help improve infrastructure efficiency while supporting more reliable and intelligent communications services.
Ericsson Partnership for AI-Based Network Optimization
KDDI recently conducted a field trial with Ericsson on its live commercial network to test AI-driven optimization technologies.
According to Ericsson, the trial used an AI-powered uplink interference optimization application along with a third-party rApp solution developed by FYRA. The objective was to improve network performance under increasing traffic loads.
The results showed that uplink performance improved across both 4G and 5G networks, even as uplink traffic increased by approximately 10%.
This trial demonstrates how AI-based network management can help telecom operators improve efficiency and maintain service quality as mobile data demand continues to rise.
Multi-AI System Improves Base Station Performance
In addition to the Ericsson collaboration, KDDI and KDDI Research have developed a multi-AI optimization system specifically designed for telecom base stations.
The company revealed that the AI system successfully improved network performance in locations prone to slow connections by around 25%. At the same time, the technology reduced network optimization workload by more than 95%.
These improvements highlight the growing role of artificial intelligence in automating telecom operations and solving network performance challenges in real time.
As networks become increasingly complex due to 5G expansion and future 6G requirements, AI-driven automation is expected to become essential for telecom operators globally.
KDDI’s Preparation for the 6G Era
While 5G deployment is still expanding worldwide, KDDI is already laying the groundwork for future 6G technologies.
The company stated that approximately 100,000 base stations across Japan could eventually serve as sensing hubs once 6G services are introduced. These intelligent network sites are expected to gather real-time environmental and operational data that can be processed by AI-supported management systems.
This approach reflects the broader industry trend toward intelligent and self-optimizing communication networks.
KDDI’s vision for 6G goes beyond faster internet speeds. The company expects future networks to support real-time AI processing, advanced automation, smart city technologies, and large-scale connected infrastructure.
Collaboration on Beyond 5G and 6G Research
KDDI is also actively participating in Japan’s national Beyond 5G and 6G research initiatives.
In May 2026, KDDI Research announced that it had jointly developed 6G-oriented base station technology with Nokia Solutions and Networks.
During a proof-of-concept trial, the new technology reportedly reduced base station power consumption by up to 40% while maintaining the same throughput levels.
Reducing energy consumption is considered a critical challenge for future telecom infrastructure, especially as AI workloads and network traffic continue to grow rapidly.
Joint 6G Project with Major Japanese Telecom Companies
KDDI is also collaborating with several major Japanese technology and telecom companies on a broader Beyond 5G and 6G project.
The initiative includes partnerships with:
- NTT
- Fujitsu
- NEC
- Rakuten Mobile
The project was selected by Japan’s Ministry of Internal Affairs and Communications as well as the National Institute of Information and Communications Technology (NICT).
Its primary objective is to develop common infrastructure technologies that can support future social implementation and international expansion of 6G services.
The collaboration reflects Japan’s broader national strategy to remain competitive in the global telecommunications industry and secure leadership in next-generation wireless technologies.
Expansion of Low Earth Orbit Satellite Services
Another important component of KDDI’s future connectivity strategy is the continued expansion of low Earth orbit (LEO) satellite communications.
In April 2025, KDDI and Okinawa Cellular launched au Starlink Direct, which they described as Japan’s first direct-to-cell satellite service.
The service enables smartphones to connect directly to satellites without requiring specialized satellite equipment or separate applications.
Initially, the platform supported approximately 50 smartphone models and was made available to au customers at no additional application cost.
Direct-to-cell satellite technology is becoming increasingly important for extending mobile coverage to remote and underserved areas. It also provides additional network resilience during natural disasters and emergencies.
KDDI’s investment in satellite communications aligns with the company’s broader goal of creating a highly connected national infrastructure capable of supporting future digital services across all regions of Japan.
Strong Financial Performance Supports Expansion Plans
KDDI’s aggressive infrastructure investment strategy is supported by stable financial performance.
For the fiscal year ending March 2026, the company reported:
- Operating revenue of 6.07 trillion yen
- Year-on-year revenue growth of 4.1%
- Adjusted operating income of 1.15 trillion yen
- Operating income growth of 1.1%
These results indicate that KDDI continues to maintain strong business stability while investing heavily in next-generation technologies.
The company believes that its infrastructure expansion programme will support both enterprise services and AI-powered consumer applications over the coming years.
AI Infrastructure to Shape the Future of Telecommunications
KDDI’s Power-to-Connect 2028 strategy highlights how telecom operators are evolving beyond traditional mobile services into large-scale digital infrastructure providers.
Artificial intelligence, automation, satellite connectivity, cloud computing, and future 6G technologies are now becoming central pillars of telecom industry growth.
By investing heavily in its Digital Belt initiative, AI-enabled network automation, and nationwide low-latency infrastructure, KDDI aims to position itself at the forefront of Japan’s digital transformation.
The company’s focus on combining telecom infrastructure with AI computing capabilities could play a significant role in enabling future smart cities, intelligent transportation systems, autonomous technologies, and advanced digital services.
As global demand for AI-powered applications continues to increase, telecom operators like KDDI are expected to become critical players in delivering the infrastructure needed to support the next generation of connected technologies.
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