TOKYO—KDDI, the second-largest operator in Japan, is going to report a 200 billion yen (US$1.6 billion) special loss for the fiscal year which will end in March 2002, because the carrier is going to claim all its non-performing assets, several Japanese newspapers reported this week. KDDI is suffering from 1.8 trillion yen (US$14 billion) in debt with interests as of the end of March 2002.
As part of its effort to reduce the swollen debt with interests, KDDI has compiled a mid-term restructuring plan, which includes a 400 billion yen (US$3.1 billion) reduction in investments into plant and equipment during three years.
KDDI has been providing its mobile services based on cdmaOne and PDC, the Japanese unique mobile system. But the carrier recently announced that it would terminate its PDC-based services to concentrate its resources on cdmaOne and cdma2000 services. According to the papers, KDDI is also going to claim 100 billion yen (US$777 million) residual values of its PDC facilities.
