Post on 11-Jan-2016
FTTH in JapanFTTH in JapanLessons from a Broadband SocietyLessons from a Broadband Society
AFL Telecommunications:
• AFL = Alcoa Fujikura, Ltd.• Established in 1984 to provide optical products
for power utility applications.• Headquartered in Franklin, TN.
– Major manufacturing operations in:•Duncan, SC•Belmont, NH•Mexico and the U.K.
Overview:• Japan is experiencing widespread deployment of
fiber-to-the-home (FTTH).• Deployment is driven by a competitive telecom
environment.• Power Utilities are a key player in this
environment.• Competition and economy of scale have enabled
development of inexpensive and scalable technologies.
• Public Power can help lead the United States toward similar competition and benefits.
Jul. 2003 OF Networks Co., Ltd. Private research results
NTT West(Pink dots)
NTT East(Yellow dots)
Usen(Blue dots)
TEPCO(Red dots: Tokyo area)
Chubu Electric Power(Red dots: Nagoya area)
K-Opticom(Red dots: Osaka area)
Energia(Red dots: Hiroshima area)
QTNet(Red dots: Fukuoka area)
FTTH In Japan:
Aug. 2003 OF Networks Co., Ltd. Private research results
Carriertotal number of
subscribersNo. of increase /
month
NTT east141,047
Jul. 2003
30,000
Jul. 2003
NTT west151,000
Jul. 2003
30,000
Jul. 2003
Usen124,300
Jul. 2003
12,500
Jul. 2003
TEPCO10,000
Jul. 2003
1500
Jun. 2003
Chubu
Electric Power
3,800
Jul. 2003
500
Jul. 2003
K-Opticom46,000
Jun. 2003
2,500
Jun. 2003
Energia6,000
Jul. 2003
2000
Jul. 2003
QT-Net18,000
Jul. 2003
2,000
Jun. 2003
June July2003
81,000 increase / month
587,000
Number of FTTH Subscribers in Japan
End of 2003
1,200,000 – 1,300,000
Rate of Deployment:
Why this deployment rate?
• Japan has a national broadband policy. However:– FTTH deployment is not government subsidized.– Labor rates to install new cable are generally
higher than labor rates in the U.S.– High population density enables DSL of 10 Mb/s.
DSL, cable modem, and wireless are all widely available.
– The nationwide number of landline voice subscribers is actually decreasing.
• So, why FTTH?
Reasons for FTTH Deployment:
1. Competition2. Competition3. Nothing4. Nothing5. Competition
The Winner gets there “first with the most.”
NTT Telephones
NTT Fiber
Usen (music) Usen (Fiber)
TEPCO (CATV)
TEPCO (Fiber)
Cable TV
The View from Tokyo:
Who is Competing?
• NTT– Incumbent– Largest deployer of FTTH
• USEN– Sells data, video, and music on demand– Second largest deployer
• 5 of the top 7 deployers are power utility companies.
• Some municipalities have deployed their own networks.
Implications for the United States:
• Where there is infrastructure-based competition, no one can afford to be “overbuilt” with a superior technology.
• Japan is deploying a strong national telecom infrastructure by encouraging competition.
• Power utilities can be a key competitor.• U.S. Public Power companies serve 40 million
Americans.– Typically in areas with a shortage of high
speed data options. • Therefore, Public Power is a good place to
start.
Jul. 2003 OF Networks Co., Ltd. Private research results
CarrierProvided Services over FTTH
Internet Telephone Video Streaming
NTT east VoIP(by NTT
communication)
NTT west VoIP(by NTT
communication)
Usen VoIP MPEG over IP
TEPCO
Chubu
Electric Power
K-Opticom
Energia
QT-Net VoIP
Services Available over FTTH:
Services Available over FTTH:
• Where is the so-called “killer application?”• Japan’s carriers have found a solid business
case for future-proof media in today’s applications.
– FTTH offers good cost-distribution.– FTTH also means that your competitors are not
going to render you obsolete (assuming you have competitors).
Technology Behind the Services:
• Designed around two objectives:1. Deliver enough bandwidth to support all services.2. At price points which allow cost-recovery for data-
only services.– Low Cost of Entry
• Usually Ethernet-based.• Security and admin features to enable
operation in the telecom environment.• Highly scalable.
$400-$450/sub in “last mile” electronics
Aug. 2003 OF Networks Co., Ltd. Private research results
CarrierService fee / month
in Yen in $
NTT east5,600 Yen
+ ISP fee (less than 2,000 Yen)Approx. $63
NTT west5,300 Yen
+ ISP fee (less than 2,000 Yen)Approx. $61
Usen 5,700 Yen Approx. $48
TEPCO 7,400 Yen Approx. $62
Chubu
Electric Power5,800 Yen Approx. $49
K-Opticom 6,000 Yen Approx. $50
Energia 6,500 Yen Approx. $54
QT-Net 5,500 Yen Approx. $46
Cost of Services:
Cost of Services:
• Japan:– Average consumer pays $46-$63 per month for FTTH
service (anywhere from 10 Mb/sec to 100 Mb/sec).
• United States:– T-1 line (1.54 Mb) in Public Power coverage areas is . . .
$800? . . $1500? . . .
• T-1 lines and Japan’s FTTH are not a direct technology comparison. However,
– Clearly, Japanese consumer has more and better options.– How many of our schools, small businesses, and local
government facilities could use a $50 FTTH connection?
Lessons Learned:• FTTH can be a low cost-of-entry / low risk
proposition.• Competition in telecommunications is good. • More competition is better.• Power utilities can play a key role in creating
facilities-based competition.• Public Power is willing to compete, and can
take a lead role in building a new national telecommunications infrastructure.
Questions?
Guy SwindellAFL Telecommunications
(864) 486-7236guyton.swindell@alcoa.com