KDDI Unveils Ambitious AI Infrastructure and 6G Strategy for 2028

KDDI has unveiled its three-year strategy, named Power-to-Connect 2028, prompting questions about how the company intends to incorporate AI and prepare for the upcoming rollout of 6G technology. KDDI plans to invest 1.2 trillion yen to establish a stable AI infrastructure while improving network automation and telecommunications services. This initiative will run from April 2026 to March 2029, succeeding a previous mid-term plan focused on enhancing network capabilities and AI-driven customer service.

At the heart of KDDI's strategy is the creation of a nationwide digital belt, designed to form a low-latency transport and access network alongside AI data center infrastructure. This project will also include the construction of subsea cable landing stations and satellite ground stations, essential for boosting connectivity throughout Japan. The company projects a compound annual growth rate of 5% in consolidated operating profit under this ambitious plan, targeting 3.7% growth in Telecom Core, 10.3% in Personal Growth, and an impressive 18.0% in Business Growth by FY27-03.

KDDI is not only focusing on infrastructure but also making strides in AI automation for network operations. The company is partnering with Ericsson to trial an AI-driven uplink interference optimization application, which has reportedly improved uplink performance in both 4G and 5G environments. Additionally, KDDI has created a multi-AI system for base station optimization that has enhanced connection speeds by 25% and drastically reduced the time needed for optimization tasks by over 95%.

Future-Proofing with 6G and Satellite Technology

KDDI's strategic vision includes deploying approximately 100,000 base stations across Japan, which will act as sensing hubs for the future 6G network. These hubs are expected to deliver real-time data for AI-supported network management systems, improving operational efficiency and service quality. KDDI is also engaged in Japan's Beyond 5G research initiatives, collaborating with industry leaders like Nokia to develop base station technology that significantly lowers power consumption while maintaining throughput.

Beyond terrestrial advancements, KDDI is exploring satellite services as well. The launch of au Starlink Direct in April 2025 marked Japan's first direct-to-cell satellite service, initially supporting 50 smartphone models for au users. This service highlights KDDI's commitment to utilizing low Earth orbit satellite capabilities to enhance its service offerings and connectivity.

Financial Trajectory and Broader Implications

For the financial year ending March 2026, KDDI reported operating revenue of 6.07 trillion yen, representing a 4.1% increase from the previous year. Adjusted operating income grew modestly by 1.1% to 1.15 trillion yen. The new infrastructure program is expected to strengthen both business services and AI-enabled consumer offerings, solidifying KDDI's position in the competitive telecommunications market.

As KDDI embarks on this ambitious plan, the implications for the broader telecom landscape in Japan and beyond are substantial. The integration of AI into network operations and the proactive approach to 6G readiness could set a standard for other telecom providers. KDDI's commitment to building a resilient infrastructure through the Digital Belt initiative not only positions the company for future growth but also emphasizes the critical role of AI and automation in shaping the next generation of telecommunications. With the digital belt initiative and ongoing collaborations in advanced research projects, KDDI aims to lead the evolution of telecommunications and AI integration in Japan.