Reference News Network — March 6
According to The Nikkei on March 2, Japan’s two telecommunications giants are joining forces to develop 6G technology.
Nippon Telegraph and Telephone Corporation (NTT) and KDDI Corporation will co-develop next-generation optical communication technologies. The two companies plan to jointly research foundational optical networking technologies—from communication lines to the internal architectures of servers and semiconductors—with ultra-low energy consumption as a key advantage.
Data centers, which serve as critical hubs for global information flow, currently account for approximately 1% of the world’s total electricity consumption—a figure expected to surge dramatically in the coming years. NTT and KDDI aim to finalize the core technologies by the end of 2024 and reduce the power consumption of information and communications networks—including data centers—to just 1/100th of current levels by the 2030s, positioning themselves favorably in the global race to shape 6G standards.
The two firms are set to sign a formal agreement shortly. Their joint initiative will be built upon NTT’s proprietary technology platform, IOWN (Innovative Optical and Wireless Network). Although NTT and KDDI are domestic rivals in Japan’s telecom market, they are now collaborating to advance next-generation communications infrastructure.
Global internet data traffic is growing at an unprecedented pace. According to the International Energy Agency (IEA), data centers consumed between 220 and 320 terawatt-hours (TWh) of electricity in 2021—roughly 1% of global electricity use.
The Japan Science and Technology Agency estimates that by 2030, global power demand from communication networks will reach five times the 2018 level, while data center consumption could soar to about 15 times higher. Combined, these would account for roughly 20% of the world’s total electricity consumption in 2021.
While optical fibers already transmit data using light signals over long distances, signal processing within base stations and data center servers still relies on electrical transmission. The repeated conversion between optical and electrical signals results in significant energy loss—one major reason behind today’s high power demands.
NTT’s emerging “photonic-electronic convergence” technology aims to solve this problem by enabling servers and other equipment to process signals entirely in the optical domain. This innovation is projected to cut energy consumption to just 1% of current levels.
The technology also offers vastly improved data transmission efficiency: the capacity per optical fiber is expected to increase by a factor of 125, with significantly reduced latency. In fiscal year 2022, investments in IOWN-related projects and equipment totaled ¥67 billion (approximately USD 490 million).
KDDI, which has accumulated extensive expertise in optical transmission through its participation in submarine cable expansion projects, will contribute its long-distance optical transmission capabilities to accelerate development.
Commercial deployment of IOWN is expected to begin gradually after 2025. With KDDI’s technological support, the pace of R&D is anticipated to accelerate substantially.
KDDI will also join the industry forum launched by NTT in 2020 to advance IOWN-related research. The consortium now includes over 100 companies and institutions worldwide, such as Intel and Sony Group.
6G technology is expected to enter commercial use around 2030, offering data speeds potentially more than 10 times faster than 5G. By targeting this timeline, Japan’s two telecom leaders aim to overcome critical technical challenges together and secure a leading role in defining global 6G standards.
