Deployment of Broadband Infrastructure in the Competitive Framework: Case of Japanese FTTH

23 Pages Posted: 25 Jan 2012

See all articles by Masatsugu Tsuji

Masatsugu Tsuji

Kobe International University

Yuji Akematsu

affiliation not provided to SSRN

Date Written: August 15, 2010

Abstract

In accordance with the development of broadband services, interests are focused on the deployment of optical fiber and various reports and researches are published, including “Next Generation Connectivity” by the Berkman Center, Harvard University, and “Indicators of Broadband Coverage” by OECD. These analyze the international comparison of broadband penetration or how U.S. and EU lag behind. Less analysis was, however, spent how Japan constructed the most successful FTTH networks all over the country. As a result of competition, the number of broadband subscribers accounts for 32.0 million, including 17.8 million FTTH subscribers (55.5%), 9.7 million ADSL subscribers (30.4%) and 4.4 million cable modem (13.6%) as of March 2010. The objective of this paper is to identify factors promoting deployment of Japanese FTTH in the competitive environments utilizing the panel data analysis and the prefecture panel data of subscribers are used. The problem occurred in this process, however, is that the share of NTT locals in the FTTH market locals has been increasing and reached more than 70%. Moreover, the NTT locals’ share in the total four broadband markets including FTTH, cable modem, ADSL and FWA becomes also more than 50%. Major deregulation including unbundling, openness of facilities, connection charges and collocations were already implemented. In order to promote further competition in the FTTH market, facility-based competition in the competitive environments is desirable, but this leads to increase NTT’s share. Japan needs delicate competition policy to make good balance of these two, and the paper discusses some new schemes to satisfy two requirements. Lessons learned from Japanese experiences will provide good reference to other economies to deploy FTTH.

Keywords: FTTH, Broadband connectivity, panel data analysis, facility based competition, competition policy

Suggested Citation

Tsuji, Masatsugu and Akematsu, Yuji, Deployment of Broadband Infrastructure in the Competitive Framework: Case of Japanese FTTH (August 15, 2010). TPRC 2010, Available at SSRN: https://ssrn.com/abstract=1988604

Masatsugu Tsuji (Contact Author)

Kobe International University ( email )

9-1-6 Koyocho-naka, Higashinada-ku
Kobe, Hyogo 658-0032
Japan
+81-78-845-3418 (Phone)
+81-78-845-3418 (Fax)

Yuji Akematsu

affiliation not provided to SSRN ( email )

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
109
Abstract Views
782
Rank
451,035
PlumX Metrics