KDDI and DriveNets: A Strategic Alliance to Future-Proof Japan’s Telecom Backbone

KDDI Corporation, one of

Japan Embraces Open Networking for a New Era of Connectivity

In a bid to modernize its network backbone, KDDI will deploy DriveNets’ innovative Network Cloud software across its national infrastructure, starting with core routers in four key locations. The target for launching commercial operations is set for late 2025.

The collaboration represents a crucial chapter in KDDI’s ongoing efforts to move away from rigid, hardware-centric systems. Instead, the company is embracing disaggregated routers—systems that decouple hardware from software, enabling flexibility, faster upgrades, and cost efficiency. This is increasingly important as AI and data-heavy services demand scalable and agile network solutions.

KDDI has been experimenting with disaggregated architecture since 2020 through its work with the Telecom Infra Project. By mid-2023, the company had successfully deployed standalone distributed routers as peering devices. More recently, in early 2025, KDDI completed technical validation for deploying these routers in its core infrastructure.

Notably, the routers used in KDDI’s 2023 deployments were also powered by DriveNets’ software. The success of that rollout laid the foundation for this deeper partnership, which aims to enhance router performance, streamline management, and slash capital and operational expenses.

DriveNets, founded by Ido Susan and Hillel Kobrinsky, has gained rapid traction in the global telecom space. With backing from top-tier investors and a valuation of over \$2 billion, the company has already secured major deals with telecom giants like AT\&T and Comcast. Its technology enables cloud-like flexibility in network operations, paving the way for smarter, AI-driven infrastructures.

Susan emphasized that the partnership is more than a business arrangement—it’s a joint mission to drive innovation from core to edge, transforming how global networks operate in the age of automation and generative AI.

This latest deal positions KDDI among a select group of forward-looking telecom operators worldwide that are rearchitecting their networks for scalability, openness, and future-readiness. With Japan’s data demands surging, driven by smart cities, 5G, IoT, and immersive applications, the KDDI-DriveNets alliance arrives at a critical juncture.

What Undercode Say:

This partnership is more than just a technology integration—it signals a deeper shift in the global telecom landscape, where traditional monolithic systems are being rapidly replaced by cloud-native, software-defined networks.

Strategic Timing: KDDI is making this move precisely when global data traffic is hitting unprecedented levels. The rise of AI, cloud gaming, IoT, and 4K/8K video streaming is stretching legacy networks to their limits. This proactive pivot toward disaggregation is essential for long-term competitiveness.
Future-Proof Infrastructure: By betting on DriveNets, KDDI isn’t just chasing cost-efficiency—it’s preparing for the unexpected. Network Cloud gives operators the flexibility to deploy resources as needed, enabling elastic scaling similar to what hyperscalers enjoy. In an era of digital unpredictability, this agility is invaluable.
Israel-Japan Tech Alliance: This partnership also reflects the growing collaboration between Japanese telecom and Israeli innovation. Israel’s dominance in