KDDI has announced a new three-year plan focused on AI infrastructure, network automation, and preparations for future 6G services.
Named “Power-to-Connect 2028,” the plan covers April 2026 through March 2029. It follows KDDI’s previous mid-term strategy, which emphasized network investment and AI-driven customer service initiatives and included the company’s acquisition of a 50% stake in Lawson.
KDDI expects AI to become deeply integrated into services, operational processes, and communications infrastructure. The company says it will prioritize physical assets, customer touchpoints, nationwide infrastructure, and the development of human talent to support these changes.
Digital Belt investment
The plan includes a 1.2 trillion yen investment over three years in what KDDI calls a “digital belt.” This initiative will expand low-latency transport and access networks and build AI data-center infrastructure. It also covers subsea cable landing stations and satellite ground stations to strengthen nationwide connectivity.
Under Power-to-Connect 2028, KDDI is targeting a 5% compound annual growth rate (CAGR) in consolidated operating profit. For the fiscal year ending March 2027, the company expects 3.7% growth in its Telecom Core business, 10.3% in Personal Growth, and 18.0% in Business Growth.
KDDI describes the digital belt as a combined nationwide low-latency network and AI computing platform. The company lists telecom networks, AI data centers, cable landing stations, and satellite ground stations as key components of this infrastructure.
In parallel, KDDI is advancing AI-based automation for network operations. The company’s strategy emphasizes using AI and automation to improve infrastructure efficiency and reduce operational workload.
As part of its network automation efforts, KDDI conducted a field trial with Ericsson on its commercial network. Ericsson reported that the trial used an AI-driven uplink interference optimization application together with a third-party rApp from FYRA. The trial improved uplink performance across 4G and 5G, even as uplink traffic increased by 10%.
KDDI and KDDI Research have also developed a multi-AI system for base station optimization. The company says this system reduced slow-connection incidents at problem locations by 25% and cut optimization work time by more than 95%.
6G and satellite links
Looking ahead to 6G, KDDI plans to use roughly 100,000 base stations across Japan as sensing hubs. These sites would feed real-time data into AI-supported network management systems to enable more adaptive, intelligent operations.
KDDI is active in Japan’s broader Beyond 5G research efforts. In May 2026, KDDI Research announced a 6G-focused base station technology developed with Nokia Solutions and Networks. In a proof-of-concept trial, this technology cut base station power consumption by up to about 40% while maintaining the same throughput.
KDDI also participates in a joint Beyond 5G/6G project alongside NTT, Fujitsu, NEC, and Rakuten Mobile. Selected by Japan’s Ministry of Internal Affairs and Communications and NICT, the project focuses on common infrastructure technologies for social implementation and overseas expansion.
The strategy includes wider adoption of low Earth orbit (LEO) satellite services. In April 2025, KDDI and Okinawa Cellular launched au Starlink Direct, promoted as Japan’s first direct-to-cell satellite service.
That service initially supported 50 smartphone models and was made available to au subscribers without requiring a separate application.
Financial context
For the fiscal year ended March 2026, KDDI reported operating revenue of 6.07 trillion yen, a 4.1% year-on-year increase. Adjusted operating income rose 1.1% to 1.15 trillion yen.
KDDI says the infrastructure investments under the digital belt will support both business services and AI-enabled consumer offerings. These assets are intended to serve as the foundation for the company’s future network and service developments.
(Photo by Ray Eldath)
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