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UPDATE 2-KDDI, BT to offer business network servicesSun Jun 25, 2006 10:23pm ET166

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TOKYO, June 26 (Reuters) - KDDI Corp. (9433.T: Quote, Profile, Research), Japan's second-largest telecoms operator, and BT Group Plc (BT.L: Quote, Profile, Research) will form a venture to provide and manage communication networks for companies operating globally, a company source said on Monday.

KDDI will use BT's networks in countries where its own networks are insufficient, allowing it, for example, to connect a factory in China belonging to a Japanese firm with headquarters in Tokyo.