BT joins with Japanese operator

BT's Total Broadband offers a range of services

British Telecom is to team up with Japan's second biggest telecoms operator, KDDI, to manage communication networks for Japanese firms worldwide.

In nations where KDDI's own infrastructure is limited, it will use the British telecom giant's networks.

The two hope the venture's first-year sales will hit 5bn yen (£23m).

The tie-up, which will start on 1 August, pushed KDDI shares up by 6% last week in anticipation of the deal, but on Monday they slipped 1.3%.

The service will be marketed at Japanese companies with international operations - for example, factories in China that are owned by Japanese car firms will be able to reach headquarters in Japan with more ease.

The two firms first outlined plans to set up a joint venture in global services and outsourcing back in November 2004.