Shares of Japanese telecom company KDDI (OTCPK:KDDIF) have fluctuated in recent quarters as investors have continued to digest the impact of the decision by Japan’s Ministry of Internal Affairs and Communications to create another competitor in the country’s mobile phone market. Investors have reacted quickly and severely to news about changes in KDDI’s market share, and in the second quarter the news was not bad. Given the regulatory climate in Japan, we think the entry of another company will be orderly, for the most part, and we do not anticipate a price war.
From First Eagle Global Value Fund's second-quarter 2019 shareholder letter.
