FTTH MARKET IN JAPAN AND ITS FUTURE PROSPECTS 2005

SUMMARY

Yano Research Institute Ltd. (YANO) has conducted researches on the FTTH market in Japan based on specifications below. In relation to the internet market, YANO forecasted the number of subscriptions to internet access services by type of connection (i.e. dial-up/ ISDN, DSL, CATV internet, FTTH, and FWA) for up to 2010, focusing on FTTH in particular. It also reports trends of FTTH services and applications. Concerning optical transmission system market, market size, market trends and market prospects are reported on PON systems and optical media converters that are parts of infrastructure for FTTH services. In addition, corporate data, business operations and strategies, etc. of each communication carrier and devices and component manufacturers engaging in FTTH business are introduced and analyzed individually.

• 1. Research Target :Communication carriers (8 firms), Optical communication related device and component manufacturers (8 firms)
• 2. Research Period :January, 2005??March, 2005
• 3. Research Methodology :Face to face interviews supplemented by survey and interviews by telephone, fax, and email.

TABLE OF CONTENTS

Chapter One: Introduction: Shifting to the broadband from the narrowband

Trends at the service providers: How they should differentiate their services?

What are the merits the customers are eventually seeking for in their use of broadband services?

Benefits the establishment of broadband network actually brings, etc.

What are the influences of FTTH penetration on the optical fiber access equipment market?

Chapter 2: Trends In Internet Connection: Shifting to the broadband from the narrowband

The leading player is changing to FTTH from DSL for the future broadband market.

Forecast for broadband penetration by connection type up to FY2010.

One of the major issues is how to enclose the non-subscribers.

• 1. Overall trends
• 2. Narrowband connection trends
• 3. CATV connection trends
• 4. DSL connection trends
• 5. FTTH connection trends

Chapter 3: FTTH communication carrier trends: Battle of vertical integration type vs. horizontal division type (ISP, NTT)!

The success should depend on how much they can make use of their advantages.

Competition with financial muscle, offering fee-free campaign of for the first several months!

• 1. Trends by business category
• 2. Connection + ISP service providers (vertically integrated companies)
• 3. FTTH service strategies
• 4. FTTH service capital investment

Chapter 4: : Broadband application trends

What are the contents optimal for potential of the broadband?

What are the contents that could be offered only through the broadband services?

Application development based on the seeds and appeal power of the applications are the key points.

• 1. IP phones
• 2. Video distribution

Chapter 5: External factors affecting the FTTH: FTTH related policies of the Ministry of Internal Affair and Communications

Chapter 6: Optical transmission systems market

PON system market is expected to make a big leap and GE-PON system market is also emerging.

New market entries are started to be seen in the segmentalized markets and competition among the participating manufacturers seems to be intensified.

• 1. Overall trends in the optical transmission systems market
• 2. Overview of optical fiber access equipment market
• 3. PON system market
• 4. Future outlook for PON systems market
• 5. Media converter market
• 6. Future outlook for optical media converter market\\

Chapter 7: Individual business sheets

Summary of communication carriers' views on the FTTH business and outline of their capital projects

Outline of current business and future strategies of device and component manufacturers

Outline of major products and sales trends of each manufacturer

• 1.Telecommunication Carriers
  • 1-1.NTT East
  • 1-2.NTT West
  • 1-3.Energia Communications
  • 1-4.K-Opticom Corporation
  • 1-5.KDDI Corporation
  • 1-6.Kyushu Telecommunication Network
  • 1-7.Chubu Electric Power
  • 1-8.USEN Corporation
• 2.Manufacturers
  • 2-1.NEC Corporation
  • 2-2.Oki Electric Industry
  • 2-3.Sumitomo Electric Industries
  • 2-4.Hitachi Ltd.
  • 2-5.Fujikura Ltd.
  • 2-6.Fujitsu Ltd.
  • 2-7.Mitsubishi Electric Corporation
  • 2-8.UTStarcom Japan K.K.