Abstract

KDDI, originally an overseas telephone company, acquired the two largest cable operators J:COM and JCN to obtain the access network to households, which is essential for competition against the telecom giant NTT. Starting from Cable-plus Phone service, KDDI has allied itself with cable TV operators, which had no competitor since their service areas were sanctuarized. However, telecom operators including KDDI started IP (Internet Protocol) based broadcasting services over optical fiber. Besides, Over-The-Top videos such as YouTube and Hulu are very popular among young people because these videos are available anytime and anywhere, e.g. with smartphone. Facing intense competition, Makoto Takahashi, a Senior Vice President of KDDI, is seeking for the growth strategies in cable TV business.

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