December 20, 2006

Fiber-optic Internet connections hit 7 million in Japan

Fiber-optic service drives expansion in broadband market

The number of fiber-optic broadband Internet subscriptions in Japan reached 7 million in the third quarter, according to data released Wednesday.

The figures from Japan's Ministry of Internal Affairs and Communications (MIC) also show that the fiber-optic service, which is low cost and offered throughout Japan by several competing carriers, continues to drive the expansion in the country's broadband Internet market.

On the last day of September, 7.2 million of the country's 25 million broadband subscribers were using fiber-optic connections, said the MIC. The ministry releases nationwide broadband figures once every three months.

A typical fiber service is that offered by fixed-line carrier NTT East Corp., which charges ¥5,200 (US$) for the basic connection on which an ISP (Internet service provider) fee of around ¥1,000 is generally charged. Competition is fierce among carriers and ISPs and promotions often mean installation of the service within 2 weeks of ordering and the first several months at no charge.

Fiber optic connections, which are typically 100M bps (bits per second) dedicated or shared between a small number of households, saw a net gain of 848,953 subscriptions and grew by 80 percent on the same period a year earlier. That gain outweighed the growth in total broadband subscriptions for the quarter, 824,131, with some users abandoning ADSL (asynchronous digital subscriber line) in favor of fiber.

The rise means that fiber-optic connections are now equivalent to about half the total ADSL market. ADSL, which is available at speeds up to 47M bps, remains the most popular broadband Internet connection despite a slight fall in subscribers during the quarter.

Cable Internet subscriptions came in third place at 3.5 million and last was fixed wireless access, which is only available in limited areas and had 10,954 subscribers.

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