KDD has decided to construct a large-capacity fiber-optic cable that will encircle the Japanese archipelago on the ocean floor, the telecommunications giant said.

The cable, known as the Japan Information Highway cable, is expected to strengthen Japan's telecommunications infrastructure in the multimedia age, it said. KDD, together with regional power utility-group telecommunications companies, conducted a feasibility study on the use of inland transmission circuits via the cable.

The study confirmed that it is possible to provide users with inexpensive, high-quality telecommunications services using the cable and inland transmission circuits connected to it. Based on the findings, KDD concluded a basic agreement on the use of the network with the nine utility companies, it said. The cable will encircle Honshu, Shikoku and Kyushu, and will touch land at some 17 locations including Hokkaido and Okinawa.