NTTNTTMassive FTTH rollout in NTT - the present situation and future prospects -Hiromichi ShinoharaNTT Information Sharing Laboratory GroupNovember 19, 2008Digiworldsummit 2008NTTNTTOutline Overview of Japanese FTTH market Lessons learned from massive FTTH deployment Key technologies that enable massive FTTH rolloutNTTNTTBroadband users in Japan (Home connected)0246810121416JuneJuneJuneJune 200520042003CY20022006June 2007JuneMillionADSLFTTHCATV(HFC)12.3M in June 2008 13.1M in June 20082008JuneNTTNTTBroadband users in NTT (Home connected)024681012JuneJuneJuneJune 200520042003CY20022006June 2007JuneMillionADSLFTTH2008JuneNTTNTTA breakdown of FTTH usersWhole Japanese marketNTTBesides NTTas of June 2008MDUSDUThe average ratio of MDU residents throughout Japan is 40% FTTH has been spreading widely to users both in MDU & detached houseMDU : Multi Dwelling Unit SDU : Single Dwelling UnitNTTNTTCompetition in the Japanese FTTH marketShares in FTTH marketNTT 72.9%Power Company 10.2%USEN 4.3%Others 7.0%As of June 2008KDDI 5.6%SDUMDU5NTTNTTFTTH share in individual prefectures020406080100NTTs share (%) NTTs nationwide share of FTTH is above 70%. In urban areas, NTT faces strong competition.OkinawaKagoshimaKumamotoMiyazakiOitaNagasakiSagaFukuokaKochiTokushimaEhimeKagawaYamaguchiShimaneTottoriHiroshimaOkayamaHyogoMieWakayamaFukuiShigaOsakaKyotoNaraAichiShizuokaNaganoGifuIshikawaToyamaNigataYamanashiKanagawaTokyoSaitamaGunmaTochigiChibaIbarakiFukushimaYamagataMiyagiIwateAkitaAomoriHokkaidoNTTNTTP2MP fiber 8braches as a unitP2P fiberEPON 8braches as a unitNTTs obligations for unbundling & sharingOLTONUPoint of interface8 branches Dark fiber Poles sharing Duct must be leased if there is a spare ductNTTs main competitors installed most optical fiber cable by themselvesNTTNTTFiber penetration in NTTFiber coverage rate =Feeder point FSA : Fiber serving area (distribution area)ie FTTH service offering area Other distribution areaCO# of tel. lines in FSA # of total tel. lines 90%: similar to “home passed”NTTNTTFTTH service in rural areaNTT and municipalities are jointly promoting FTTH service in rural areaas of Aug. 200852 villages/townsNTTNTTTypical FTTH application servicesTransactionCommunicationBroadcast retransmissionRF overlayIP broadcast as NGN serviceVoIP (with 050 AB.J)Hikari-denwa (High-quality IP phonewith 0ABJ)Video telephonyInternet access- Shopping- Trading- etc.VOD (IP video)Flets square (content service) PodcastingLocation free videooffered by NTToffered by ISPoffered by NTT in conjunction with ISP or satellite television providerNTTNTTTwo video services on FTTH in NTT- FLETs TV : CATV-like service, RF format Basic service : Broadcast retransmission incl. HDTV(terrestrial & satellite broadcast) Additional service : More channels up to 300chTechnology : RF overlay - Hikari TV : IP video service, IP format Broadcast retransmission(so far, only terrestrial broadcast in limited area) VOD, More channelsTechnology : IP multicast over NGNNTTNTTMonthly charges and subscription rates of typical FTTH serviceDetached houseMDUJPY 5,200650 500JPY 2,500Basic service : dataJPY 5,200 for detached excl. ISP chargeJPY 2,500 3200 for MDU excl. ISP chargeSubscription :100%Additional service : VideoJPY 650 for broadcast retransmissionadditional JPY for more channelSubscription : 65%, increasing rapidly50065010NTTNTTNTT started to promote FTTH service to non-PC user in addition to PC userNew applications on FTTH in NTT市外局番 市内局番 下4 -Kururimo : Remote home camera with an IR sensor, microphone,speaker & mailing function.can be controlled by mobile phone.- remote set-up, maintenance - network game - game software downloadNTTNTTOther services on FTTH in NTT Wii x B-FLETs Remote home camera Home security monitoring service QoS guaranteed service in NGN FLETs virus clear service FLETs rescue service (security support service) Remote support service File hosting service File sharing service:There is no “single“ killer application. It is important to offer a wide range of applications to raise ARPU and to spur users demand for FTTH. NTTNTTChange in ARPU from FTTH The bundled service of FTTH records a higher ARPU than POTS service. The ARPU has been increasing gradually. It is urgent to raise ARPU further to strengthen our financial basis.FY 20055,0004,000(Yen)4,8005,120FY 2006FY 20075,370(ARPU : Average Revenue Per User)FY 2008estimate6,0005,607NTTNTTOutline Overview of Japanese FTTH market Lessons learned from massive FTTH deployment Key technologies that enable massive FTTH rolloutNTTNTTLessons learned OSS is the key for prompt & massive rollout Easy construction technologies are the keys to cost reduction and prompt & massive service offering Const. work for SO was time consuming Ex. :Excess bare fiber storageONU installationIn-house optical cord wiring OPEX reduction technologies are indispensable to maintain huge number of users efficientlyNTTNTTExamples of easy construction