BT, KDDI Team Up

BT and KDDI form JV targeting Japan's growing market for global managed network and global outsourcing services

June 26, 2006

2 Min Read

TOKYO -- BT, one of the world’s leading providers of global communications solutions and services, and KDDI, Japan’s second largest full service telecoms operator, today announced a 50:50 equity joint venture at a ceremony in Tokyo attended by Andy Green, Chief Executive Officer of BT Global Services and BT main board member and Tadashi Onodera, President and Chairman, KDDI. Under the JV, the two companies plan to leverage each other's strengths to offer global managed services and network-centric outsourcing solutions to Japanese multi-national companies.

Andy Green said: “As the world’s second largest corporate market, Japan is high on BT’s priority list, and with good reason. Industry reports estimate the size of the current outsourcing market in Japan at approximately US$90 billion1, twice the size of the rest of Asia Pacific markets combined. Furthermore, the challenges of managing global networking technology, coupled with greater demands on performance, reliability and security, are projected to drive significant growth for network outsourcing2.

“The joint venture agreement with KDDI is a perfect fit to address this market demand, with BT bringing its global capabilities and proven outsourcing track record, and KDDI contributing local relationships, capabilities and focus on the Japanese market. BT Japan’s and BT Infonet Japan’s existing customers will be serviced by the JV. In addition, the JV will bring an extended range of service possibilities benefiting companies headquartered in Japan with international operations.”

Upon launch, the JV will have approximately 100 employees backed by the full corporate resources of BT and KDDI including R&D, IP-based services, financial strength and true global scale.

Tadashi Onodera commented: "A current trend of our customers is to move towards contracting for global solutions to satisfy their network and information technology needs. Harmonizing the resources and know-how of BT's global services with the experience KDDI has built up over many years of providing Japan domestic and international services to our Japan clients will, I am convinced, result in a total global solution that will meet their extremely high expectations."

While the majority of BT’s business and resources in Japan will be transferred to the JV, the company will continue to provide carrier, financial and technology services directly.

BT Group plc (NYSE: BT; London: BTA)

KDDI Corp.

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