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Japanese telcos plan DSL shutdown to favour FttH: report

Fibre to the Home connections are something many Japanese have signed up to in the tens of millions for years, but DSL connections are steadily falling.

The latest analyst note on Japan from telecommunications analysis and research company BuddeCom says Japan is move to ‘close down DSL in favour of FttH.’

The details are contained in an 87-page report entitled ‘Japan - Telecoms, Mobile and Broadband’ that the company is selling to relevant parties at US $895 a pop.

The analyst note explains that Japan has ‘one of the most advanced telecommunications markets in the world,’ something it has had for some time.

Now comes the news that FttH is making up ‘an increasing proportion of the fixed broadband market at the expense of DSL,’ which is leading to operators planning a DSL network shutdown.

Part of the reason is stiff competition from wired and wireless competitors, including cable and FttH.

Naturally, the report notes both Japan and South Korea being ‘far ahead of the game relative to the other countries of the world’, with the mix of factors making this possible including ‘market readiness, consumption craziness, tech savviness, huge amounts of money, government intervention and broadband and telecom service providers willing to make the jump into the FttH market to be more competitive and gain market share, even if the cost per home passed did not work out to be a sound economic model over the short term.’

Not mentioned here is the smaller surface area of Japan and South Korea compared to the massive country that is Australia, but even so, Japan’s ‘broadband leadership’ will make ‘the next wave of web applications’ happen with ease.

Key developments detailed in the report include:

  • Operators planning to eventually shut down legacy DSL platforms
  • NTT’s market share of the FttH market is being eroded by competition;
  • Video-on-Demand (VoD) players have emerged spearheaded by Hulu
  • Japan’s largest satellite pay TV platform is increasingly looking to South East Asia to grow revenue
  • LTE represents the majority of mobile subscriptions;
  • Overall ARPU continues to decline despite growing data ARPU;
  • Operators are focusing CAPEX on LTE, with operators expected to eventually cease investing in 3G;
  • Increasing LTE speeds are made possible through carrier aggregation technology;
  • WiFi investments made to alleviate 3G/4G network congestion by offloading traffic;
  • Mobile content and applications is receiving increased focus as revenue growth from mobile data ARPU is expected to fall due to the mature market.

Companies covered in the report include: NTT, KDDI, Softbank, eAccess, eMobile J:COM, Sky Perfect, IIJ, Virtela, Willcom, UQ Communications, NHK and Hulu.

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Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

 

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