Japan’s second largest telecoms group KDDI is diversifying into broadcasting, planning a nationwide video content service by year-end.

KDDI will pour ¥120 billion ($1bn; €0.9bn; £0.6bn) into the scheme, leasing optical-fibre networks from NTT to supply video content to homes across Japan. The service should be up and running in the third quarter of this year.

The telecoms group hopes to attract 3 million subscribers to its new offering by 2007 and make ¥250m in sales. It will offer bundled packages of telephone, video-on-demand and other broadband services in a bid to raise revenues from its fixed-line business.

KDDI’s move will be mirrored by rival Yahoo BB, which intends to launch its own video-on-demand offering this year as it battles for broadband customers.

Data sourced from: Financial Times; additional content by WARC staff