KDDI may spin off fixed-line ops
TOKYO, Japan (Reuters) -- KDDI Corp, Japan's second-largest telecoms carrier, said on Monday that it had started considering spinning off its fixed-line business but no details had been decided yet.
The Sankei Shimbun newspaper reported on Sunday that KDDI was studying a possible transfer of its fixed-line operations to a wholly owned subsidiary to focus on its rapidly expanding mobile phone business.
A KDDI spokesman said the company was mulling the spin-off for "various" reasons.
The Sankei said the spin-off could take place as early as October.
The new firm would take over such operations as voice and data transmission services, broadband ADSL and fibre-optics. About 3,000 employees, a third of its workforce, would be transferred, the paper said.
Meanwhile, the Nihon Keizai Shimbun reported on Monday that KDDI was studying spinning off fixed-line services for business users by the end of December, as the market for corporate fixed-line business had become more competitive.
The Nihon Keizai said KDDI would keep planning and development operations for corporate users, and fibre-optic services for retail users, but would spin off system solution and voice/data services.
About 800 employees would be transferred to the new entity, the newspaper said.
Shares of KDDI were up 2.55 percent at 604,000 yen in Monday morning trade, compared with a 0.04 percent decline in the Nikkei average.
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