FTTH boosts overall optical market growth in Japan

Jan. 1, 2007

The total number of FTTH subscribers in Japan reached 5.4 million by the end of March 2006, an 88% increase over the previous year, reveals a new report from Tokyo-based Yano Research Institute Ltd. As a result, the optical access market has experienced steady growth, topping ¥76 billion in fiscal year 2005. PON systems accounted for ¥65.5 billion, while media converters accounted for ¥10.7 billion.

Lower monthly fees for broadband Internet access and optical IP phone services are the biggest drivers for the increase in FTTH subscribers, say Yano analysts. The cost for FTTH and IP phone service is now lower than the cost of ADSL and conventional analog phone service.

Yanoestimates that 3 million new subscribers will opt for FTTH each year through 2011, for a total of 27 million subscribers by the end of the forecast period. This number represents more than half the total number of Japanese households.

Access market growth will result in increased pressure on both metro and core networks, prompting carriers to invest more in WDM and SONET/SDH gear as carriers develop a better understanding of the features and functions required to support the increase in traffic, says the report. The total optical transmission system market reached almost ¥190 billion in fiscal year 2005, a 6.7% increase over 2004. The market is expected to remain at this level for several years, sustained by the steady increase in FTTH subscribers.

The CWDM market, in particular, has exhibited steady growth over the last few years, driven by increased traffic between metro and core networks as a consequence of the access network build-out. The CWDM market recorded revenue of ¥7.16 billion in fiscal year 2005 and is expected to net ¥7.35 billion in 2006.

For additional details about the report, “Fiber-optic Telecommunication Market in Japan 2006,” visit Yano Research Institute at www.yanoresearch.com.

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