IDC Japan Publishes Report on Japan's Broadband Market.

Tokyo, Japan, Oct 28, 2005 - (JCNN) - IT market researcher IDC Japan has released a report on business trends in the Japanese broadband market. According to the report, the number of ADSL users in Japan will reach 14.8 million by year-end, up 11.1% year-on-year though slower than the previous year, while the number of FTTH users will leap 89.1% to 4.6 million.

IDC Japan attributes the FTTH expansion to aggressive sales by service providers and lowered subscription fees, and analyzes that the FTTH market will engulf ADSL users, forcing them to switch to high-speed FTTH as more and more housing complexes are fitted with FTTH connectivity. From 2005 to 2009, the compound annual growth rate (CAGR) of the FTTH market is forecast to be 40%, while that of the ADSL market 5.5%, which translates into 13 million FTTH users and 17 million ADSL users by 2009.

By June, the share of ADSL users in the broadband market reached 68.4%, and that of FTTH users 16.6%. Quarterly growth in ADSL subscribers slowed down to 3.0% in the year ended June 2005, compared to 7.7% in the year ended June 2004. The figures for FTTH are 21.1% and 19.6%, respectively.

ADSL users who do not feel compelled move on FTTH may continue to use to the current service, and entry-type ADSL service has also been introduced at an affordable price, allowing the ADSL market to be kept substantially large.

IDC Japan forecasts that, although FTTH will definitely expand, ADSL will continue to keep more than a 50% share until 2009 as subscribers to narrowband services are likely to upgrade to ADSL.

Source: JCN http://www.japancorp.net

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