KDDI has become the victor in the race to purchase a major stake in Jupiter Telecommunications (J:COM). Under the terms of the deal, KDDI will acquire a 37.8 percent stake in the company.
Completing the estimated $4 billion deal did not come easy since it emerged in late January. The Japanese provider faced a few major hurdles, including a regulatory inquiry and a competing bid from Sumitomo.
For KDDI, the value in purchasing a big stake in J:COM is twofold. At a time when its market share has been eroding in Japan, the stake in J:COM would give them access to a possible 3.2 million homes to provide telephony service, but also decrease their reliance on NTT for fiber connectivity.
For more:
- see the J:COM release here
- Telegeography has this article
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