“See The Light” is FTTH market in Asia-Pacific
< What you learn from AP and what you expect from it. >
Shoichi Hanatani
President
FTTH Council Asia-Pacific
( Sr. Director, Hitachi Communication Technologies )
shoichi.hanatani.he@hitachi.com
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Outline
What is FTTH Council Asia-Pacific
Kizuna : What FTTH brings
“See The Light “ : Asia-Pacific
Market Study & global FTTH definitions
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Our Role and Overview
International Industry Association :
Non-Profit Organization Registered to Singapore, March 2005
Voluntary Board of Directors
Mission :
To educate, promote and accelerate
FTTH and the resulting
quality-of-life enhancements.
http://www.ftthcouncilap.org
Objectives :
z Supply a consistent and accurate view of FTTH
z Promote FTTH market development
z Be recognized by the industry as the FTTH resource
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Our Intercontinental SYSTER Organizations
60+ Members
135+ Members
40+ Members
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Differences among THREE bodies
FTTH Council North-America : 135 members
2/3rd : equipment vendors
1/3rd : service providers
Region coverage : U.S.A. Canada & Mexico
FTTH Council Europe : ~ 60 members
No member from service provides
Region coverage : 25 EU-Members, Swizerland & Norway
FTTH Council Asia-Pacific : > 40 members
2 members from service provides
Region coverage : equal to “World Cup” AP region
Need to respect “Culture” & “History”
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
-5-
FTTH Council Asia-Pacific Proprietary
Outline
What is FTTH Council Asia-Pacific
Kizuna : What FTTH brings
“See The Light “ : Asia-Pacific
Market Study & global FTTH definitions
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
絆 : KIZUNA a “newly connected” Cyber World
絆 ： More than partnership, more than friendship and more than family-ship
IP-based Broadband Access brings a Cyber World
FTTH : Virtual (cyber ) transportation
and complementary with physical transportation
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Business Model Change from 4P to 4R
Products/Services
Consumers
Vendors
Sales/Marketing
Money
4P Check
Target
Adjustment
Target
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
Broadband
-8-
Product
Concept
Brand
Package
Price
Promotion
4P
Place (Logistics)
Relationship
Retrenchment
Relevancy
Rewards
FTTH Council Asia-Pacific Proprietary
4R
FTTH C-AP support another “KIZUNA”
• Network Operators need a set of
“solution” to migrate to fully IP-based
broadband access networks.
• FTTH C-AP is a physical space
( Kizuna ) where everyone gets
together to share, learn and discuss.
www.ftthcouncilap.org
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Outline
What is FTTH Council Asia-Pacific
Kizuna : What FTTH brings
“See The Light “ : Asia-Pacific
Market Study & global FTTH definitions
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
“See The Light”
“See The Light” : Asia-Pacific is unique and dynamic
• Market Leaders : “lighthouses on the coast”
– Japan
• More than 6M FTTH subscribers
– Korea
• Extremely high broadband penetration and FTTB
– Hong Kong
• Potential and Rising Market : “bright future”
– China
– India
– South-East Asian Countries
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
AP is a BB & FTTH market leader
70,000
Subscribers (000)
North America
60,000
Latin America
50,000
Europe
North America
4%
EMEA
Mid-East & Africa
40,000
Asia Pacific
Asia-Pacific
82%
30,000
20,000
14%
10,000
0
Y2005
Broadband subscriber by region
FTTH Subscriber @1Q05
Source : Ovum-RHK
Market Status
North America
Latin America
Europe
Mid-East Africa
Asia Pacific
4.0%
42.8%
17.2%
33.3%
2.7%
Source: Ovum-RHK
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
- 12 -
FTTH Council Asia-Pacific Proprietary
Outline
What is FTTH Council Asia-Pacific
Kizuna : What FTTH brings
“See The Light “ : Asia-Pacific
Market Study & global FTTH definitions
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Broadband Household Penetration Rate (APAC)
35,000
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Subscribers (000)
30,000
25,000
20,000
15,000
10,000
5,000
A
us
tra
lia
H Chi
on na
g
K
on
g
In
In d i a
do
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Ja
pa
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K
o
M rea
al
a
Si ysi
ng a
ap
or
Ta e
iw
Th an
ai
la
V nd
ie
tn
am
0
Source: Ovum-RHK / FTTH Council Asia-Pacific (Joint work)
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Household Penetration (%)
Broadband subscriber and household penetration rate in APAC (Y2005)
FTTH Subscribers (APAC)
Percentage (%)
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
H Chi
on na
g
K
on
g
In
I n dia
do
ne
sia
Ja
pa
n
K
o
M rea
al
a
S i ysi
ng a
ap
or
Ta e
iw
T h an
ai
la
V nd
ie
tn
am
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
A
us
tra
lia
Subscribers (000)
FTTHsubscriber and FTTH percentage in APAC (Y2005)
* FTTH includes, FTTB, FTTC and FTTH etc.
Source: Ovum-RHK / FTTH Council Asia-Pacific (Joint work)
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Broadband Subscribers – Forecast (12 Regions)
Broadband Subscribers Forecast (APAC, 12 Regions)
140,000
FTTH
120,000
26M
Subscribers (000)
Cable Modem / etc
23M
100,000
16M
20M
80,000
18M
60,000
12M
DSL
15M
13M
88M
78M
40,000
57M
67M
20,000
0
2006
2007
2008
2009
Year
Source: Ovum-RHK / FTTH Council Asia-Pacific (Joint work)
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
FTTH Driving Factors
•
Government Policies and Influence
China : 5-year plan
Korea : IT839 and Emblem
Taiwan : High-Tech Service Island
Japan : Unbundling
•
：
Accumulated sales amount
Accumulated costs
Competition
Multiple FTTH service providers in Japan
0
New Services
Capex
•
Video/Image-based BW eaters
Personalization
1
2
3
4
5
Year
-
Depreciation Costs
Opex & IncrementalCapex
•
Housing and Population Density
Cash-flow economy impact on
long-term investment
Apartment houses and Condominium
Smaller Houses
MDU in China : > 85 %
Back to Tokyo downtown phenomena
•
Access Loop Network
Asia loop length average is 2-2.5 km, vs. 3.5 to 4 km in U.S.
•
Cultural Issues
Speed is a key in Korea
Status Symbol in Japan
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Analysis on FTTH Market in Japan
Government Policies and Initiative
e-Japan & u-Japan
Unbundling but one-bill payment
Highly competitive marketplace
“leapfrog” competing technology for high-speed internet access
NTT market share in metropolitan areas is about 50 %
Ethernet-only services over B&GE-PON up to 100 Mb/s
High-speed internet access focus at the beginning
Now VoIP service is available
Non-hardened units deployed inside the home
For residential house and condominium
Simple systems based on engineering prices
High speed access is a “status symbol”
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary
Summary
FTTH Council Asia-Pacific is FTTH industry association
based on NPO
FTTH is virtual transportation to bring Kizuna (cyber-world)
respect to culture & history needed
Asia-Pacific is “See The Light”
Not only industry promotion but also governmental one is
necessary
ITU Workshop : The Future of Voice, 15-16 Jan. 2007
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FTTH Council Asia-Pacific Proprietary