The company aims to serve mobile customers through what it has coined its “3M Strategy” (multi-use, multi-network, and multi-device). KDDI expects mobile data traffic to increase by as much as 12 times from 2012 to 2016. Given that data traffic per smartphone is around 30 times that of a feature phone, it will be difficult for mobile networks to handle the projected increase in traffic. As a result, KDDI intends to utilize its multi-network business model by offloading mobile data onto its fixed line networks. Currently, approximately 60% of the power consumed by KDDI is used by mobile phone base stations, and air conditioning equipment accounts for a large proportion of that power usage. The company’s Type-VII radio equipment, which requires no air conditioning and achieves a per-unit power reduction of approximately 40% (compared with previous models), is reducing the energy usage at its base stations. The company is also piloting tribrid electric power control technology at its base stations. This technology combines solar power generation and accumulator batteries. According to KDDI, base stations that use tribrid power control technology have been verified to cut annual carbon dioxide emissions by as much as 30% compared with conventional base stations.
KDDI formulates a new environmental plan and sets reduction targets across numerous key performance indicators every five years. On a going forward basis, Portfolio 21 will monitor the company’s success in meeting its goals.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/13 and may not reflect current opinions or subsequent events.