Rakuten to borrow telecom lines from KDDI to cut investment burden

TOKYO -- Japanese telecommunications company Rakuten Mobile, a subsidiary of Rakuten Group, has agreed to borrow lines from rival KDDI in the 23 wards of Tokyo and other major cities where it has mainly used its own lines, Nikkei has learned.

The two companies have signed a new agreement for "roaming," or mutual access, in which they will borrow lines from each other. Rakuten expects to be able to reduce capital investment in the construction of cellphone base stations by several hundred billion yen over the next several years. Debt-ridden Rakuten Mobile will prioritize financial improvement by shifting its policy from expansion of its own lines, which imposes a heavy investment burden.