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Mobile phone carrier KDDI Corp. said Friday that it will launch a new low-cost mobile subsidiary specializing in online services.

KDDI also said that its mainstay au brand will not adopt low-cost mobile phone plans, at least for the time being.

The new subsidiary, KDDI Digital Life, will be established Monday, according to KDDI President Makoto Takahashi.

“We hope to reach a wider audience” through the new company, Takahashi told a news conference in Tokyo.

The subsidiary will be a mobile virtual network operator (MVNO). MVNOs do not have their own wireless network infrastructure.

Users will be able to complete all procedures to sign up for KDDI Digital Life’s services online using a so-called eSIM that does not require a physical subscriber identity module (SIM) card.

KDDI has also partnered with Singaporean communications company Circles Asia Pte., which offers similar online services.

The new company’s pricing plans and other details will be decided around next spring.

Meanwhile, Takahashi said that KDDI has no plan to introduce to the au brand a cheaper plan similar to the one that will be newly adopted by its low-cost smartphone brand UQ mobile.

Also on Friday, KDDI reported a group net profit of ¥372.9 billion for April-September, up 7.3% from the year before, despite a sales drop. The bottom line was supported by the strength of its teleworking business.

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