ABSTRACT

Japan’s fixed-line Internet access and third generation (3G) mobile phone services have rapidly developed, blazing a trail in the world. As of December 2006, the number of contracts subscribing to fixed-line broadband services was 25 million, broken down as fiber to the home (FTTH) (31%), asymmetric digital subscriber line (ADSL) (53%), and CATV Internet (16%). ADSL users form the majority, while the FTTH share continues to grow rapidly. Analyzing market share by providers, NTT East/West gained 39% and 68% in the ADSL and FTTH markets, respectively. At the moment, as the next-generation network plan proposed by the NTT group advances, fixed-mobile convergence (FMC) services are expected to emerge in the near future. From the top to the bottom, added values increase for consumers, while development costs increase for providers. Note that most enhanced FMC services assume advanced customers who use both FTTH and 3G services; only the NTT, KDDI, and Softbank groups can provide both FTTH and 3G services.