Yano sees Japanese FTTH expansion

September 12, 2005 Tokyo, Japan -- Yano Research Institute, a marketing research and consulting firm in Japan, announced that it has conducted comprehensive research on the FTTH market in Japan and compiled a report in which that country's rapidly growing FTTH subscriber line market and FTTH system market have been reconfirmed.

Sep 12th, 2005

September 12, 2005 Tokyo, Japan -- Yano Research Institute, a marketing research and consulting firm in Japan, announced that it has conducted comprehensive research on the FTTH market in Japan and compiled a report in which that country's rapidly growing FTTH subscriber line market and FTTH system market have been reconfirmed.

According to the firm's published report, "FTTH market in Japan and its future prospects 2005," the breakdown of Internet access line subscriptions by type of connection, at the end of fiscal year 2004, shows: 13.67 million lines of DSL; 2.77 million of FTTH; 2.96 million of CATV Internet; and 30 thousand of FWA. According to the report, in the latter half of 2004, the net monthly increase of FTTH subscriber lines came close to that of DSL, both hovering somewhere between 100 thousand to 150 thousand lines. The firm expects the net monthly increase of FTTH subscriptions to surpass the increase of DSL in early part of 2005.

The report suggests that the rapid expansion of the FTTH market has been mainly driven by tough competition among the FTTH service providers. The firm sees many providers offering fee-free services for the first several months of subscription period, as well as free cable work and activation services, in an attempt to lessen customers' burden of initial costs on top of lowered subscription fees. According to the firm, another factor that has made FTTH popular, besides higher data transmission rates, is the provisioning of "triple play" services being offered to include IP phone and video distribution together with Internet access service. Regarding survival, the firm says it is now a question of the financial strength of each individual service provider.

According to the report, as Japan's FTTH service market has expanded, the FTTH systems market has consequently grown, as carriers have had to invest more in optical transmission equipment and devices to service growing numbers of customers, and to improve system efficiencies. The firm reports that passive optical network (PON) systems exhibited the most remarkable growth among various systems markets due to their contribution in lowering the cost of service providers. The report says that GEPON systems have also played a leading role in forming a Japanese PON system market of 47 billion yen.

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