Yano Issues Fiber-Optic Telecommunication Market in Japan 2006 Report

Yano Issues Fiber-Optic Telecommunication Market in Japan 2006 Report: Financial News – Yahoo! Finance
   

Press Release Source: Yano Research Institute Ltd.
Tuesday November 14, 1:37 pm ET

‘The number of subscribers to FTTH (Fiber To The Home) services in Japan increased 88% in 2005, reaching 5.4 million at the end of March, 2006 contributing to steady growth of optical access network systems market of 76.2 billion Yen (approx. 645 million US dollars) in terms of sales in 2005,’ as revealed in a report published by Yano Research Institute Ltd., a leading marketing research firm in Japan.

TOKYO, Nov. 14 /PRNewswire/ — Yano Research Institute Ltd. (Yano), a leading marketing research and consulting firm in Japan, has conducted comprehensive research on the FTTH (Fiber To The Home) and related systems market in Japan. The research focused on the market trends of major optical transmission systems such as SONET/SDH, WDM and CWDM as well as PON (Passive Optical Network) systems and MC (Media Converters). The firm has compiled a report that provides a wealth of information on these systems markets.

According to the report, “FIBER-OPTIC TELECOMMUNICATION MARKET IN JAPAN 2006,” published by Yano, the size of the total fiber-optic access systems market has reached 76.2 billion Yen (approx. 645 million US dollars). The market is comprised of 65.5 billion Yen (approx. 555 million US dollars) for PON systems and 10.7 billion Yen (approx. 90.7 million US dollars) for MC respectively. The sharp increase in the number of subscribers to FTTH, which almost doubled in fiscal 2005, has apparently contributed to the growth of the market.

The biggest factor that has contributed to the increase of FTTH subscribers is the lowered fees for optical IP phone service with 0AB-J numbers (conventional telephone numbers) portability and lowered monthly fees for broadband internet access services. Most major telecommunication carriers commented that approximately 60 to 70% of new subscribers had concurrently subscribed to their optical IP phone services, emphasizing the cost for “FTTH and IP phone” is now lower than the cost for “ADSL and conventional analog phone,” in terms of monthly basic fees.

In conjunction with the increase of subscribers and the growth of the access systems market, the demand of transmission systems for “metro” and “core” sides, such as CWDM, has been increasing since each telecommunication carrier had to increase the capacity of their networks to cope with the rapidly increasing traffic.

Yano estimated that the total number of FTTH subscribers would exceed 27 million by the year of 2011 with over 3 million annual net increases of FTTH subscribers each year up to 2011. Further, they forecast that the demand for the access systems would hold at approximately the same level as or even slightly higher than fiscal 2005 for several years thereafter. In addition, each major telecommunication carrier is expected to invest more on the systems for “core” and “metro” sides, such as WDH and SONET/SDH in or after the second half of fiscal 2006 as features and functions required for NGN (Next Generation Network) become more specific.

http://www.yanoresearch.com/pdf/FTTH_2006.pdf

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