KDDI: an operator with ambitions to become a ‘Life Design’ company

KDDI, a Japanese operator and subject of our latest Telecoms operator growth strategies report, has been launching initiatives in numerous verticals as part of its Life Design strategy. This is in anticipation of slowing revenue growth in its core business. Many of its new service propositions are ancillary to the core business, but KDDI is ultimately positioning itself as something more far-reaching than a traditional operator, as suggested by the recent decision to adopt ‘Life Design’ as a tagline for the company as a whole. In this comment, we review KDDI’s new operations, examine the revenue and profitability prospects of the newly rechristened Life Design segment as well as the overall business and consider the lessons for other operators.