Japanese telecommunications company Nippon Telegraph and Telephone Corp. (NTT) announced it will invest 3 trillion yen ($26 billion) over the next five years on advanced research activities and fifth next-generation (5G) mobile communications networks.

Under its medium-term business strategy, NTT will also seek to strengthen its overseas businesses through the reorganization of group units and cut $7 billion in costs over the next five years. It expects 5G services to serve as the base infrastructure for the internet of things and self-driving cars.

NTT said that its cellphone subsidiary announced it will cut charges and the move is aimed at leading the market and winning customers from rivals. It will lower its mobile phone fees by 20 to 40 percent from the April to June quarter next year.

In the course of reorganizing NTT’s units, new companies will be established by July 2019 to take charge of domestic and overseas information technology operations. NTT also plans to open a research development base overseas.