KDDI Corp. is engaged in final negotiations with Tokyo Electric Power Co. over its possible absorption of Tepco's telecom subsidiary, PoweredCom Inc., in January, sources said Friday.
A KDDI-PoweredCom merger would follow the acquisition of Japan Telecom Co. by Softbank Corp. last year. It would also reduce the number of major fixed-line telecom service groups in Japan to three -- groups led by Nippon Telegraph and Telephone Corp., Softbank Corp. and KDDI.
KDDI, ranked third here in terms of fixed-line telecom services and second in the mobile phone business with its au services, plans to acquire all of PoweredCom's shares and give some of its own shares to Tepco.