KLDDI Corp, Japan's No.2 phone company, plans to acquire the cable TV operations of Tokyo Electric Power Co (Tepco) for about 20 billion yen ($222.4 million), sources close to the deal said on Wednesday.

Cable TV providers are increasingly joining hands to expand as Internet-based TV viewing gains popularity. Industry leader Jupiter Telecommunications announced last week that it would buy third-ranked Mediatti Communications.

KDDI's cable TV unit, Japan Cablenet, is the second biggest in the industry.

KDDI plans to purchase Tepco units Tepco Cable Television Inc and Kawagoe Cablevision Corp, both of which operate in Saitama Prefecture, near Tokyo, the sources said.

The deal would boost the customer base of Japan Cablenet to about 730,000 households, raising its nationwide market share to slightly more than 10 percent, the Nikkei business daily reported earlier.

Shares of KDDI were up 1.7 percent at 608,000 yen as of 0131 GMT, while Tepco shares were up 1 percent at 2,915 yen. The Nikkei .N225 benchmark rose 1.5 percent. ($=90 yen)

Source:Reuters