www.WirelessFederation.com/news: Japan’s second largest telecoms group KDDI Corp is set to buy a reduced stake in the firm from its owner US-based Liberty Global to scale back its aspirations for Japanese cable network operator J:COM. On January 25, a USD4 billion cash deal was signed between KDDI Corp and cable TV operator Jupiter Telecommunications (J:COM) from Liberty Global Inc. as per which 38% stake of the latter was acquired by the former.

Through this deal, KDDI hopes to get an access to a potential 3.2 million households for telephony services and simultaneously reduce its reliance of using NTT’s fibre-optic networks.

Soon after that, the deal got entangled and investigation into the legality of the plan was started by the regulators who were looking to slap an USD884 million fine on KDDI. According to KDDI spokeswoman Kayo Sekine at that time, the company will cooperate if the FSA should make a formal request for information and adhere to any FSA guidance. However, no comment was given on the rumored USD884 million fines.