KDDI's J:COM purchase comes under regulatory scrutiny

Japan's KDDI move to improve its growth prospects by buying a big stake in Jupiter Telecom (J:Com) has hit a speed bump as news broke that financial regulators are looking into whether its plan is legal.

If regulators find there has been any wrongdoing, KDDI may have to pay an $884 million fine. Since KDDI's pending acquisition would make it the largest shareholder in J:COM, it's required to make a public offer for the shares and get shareholder approval.

This latest development comes only weeks after KDDI put a $4 billion bid on the table to acquire a 38 percent stake in J:COM from Liberty Global. KDDI's impending purchase of a large stake in J:COM is obviously strategic for two reasons: not only would it enable them to reach 3.2 million residential subscriber homes, but have access to another fiber network besides incumbent provider NTT.   

For more:
- Telegeography has this article

Related articles
KDDI hopes to revive growth with J:Com purchase
KDDI America builds U.S. Ethernet hubs
Reliance rumored to be selling FLAG and Yipes assets
Carrier Ethernet services have continued to show strong growth
Hardware Corner: ATCA goes wireless

Suggested Articles

Employers used to give some workers a company phone; now they have the option to offer company internet.

CenturyLink is not a wireless company, but the company expects to be an important player in 5G and IoT.

Charter's Spectrum Enterprise sees an increase in demand for networks that can respond dynamically to increased demand for bandwidth.