Subscribers: In
the first quarter of 2006, the number of Japanese
incumbent broadband subscribers increased to 9.922
million showing a quarterly growth of 7.3% and
an annual growth of 28.5 %. Despite the modest
growth of DSL subscribers, the FTTx growth in
terms of subscribers has been positive for the
company in this year. The positive FTTx momentum
is based on several reasons such as the higher
speed services up to 100 Mb and the cost of bandwidth.
On average the FTTx tariffs are 10 times
cheaper than the DSL tariffs. The more ample span
of FTTx revenue stream also increases the lead
margin where the integrated packages such as security
applications to aroma-emitting devices designed
to generate fragrances are few examples.
At the end of March 2006,
the total number of DSL connections amounted
to 5.7 million (+9.1% year-on-year), whereas
the total number of FTTx reached 3.4 million
(105.5% year-on-year). Meanwhile the number
of Internet subscribers rose to 11.28 million
(+23.6% year-on-year); while the number of fixed
lines in service decreased to 46.9 million (-6.8%
year-on-year).
Revenues
of IP and Leased services according to the company
financial reports accumulated to March 2006
stood at 796.8 million Euro, a year-on-year
increase of 11.6% . This was mainly as a result
of the increases in IP/packet communications
services revenue and increases in B-FLET?s (FTTx)
subscription base. This compensated revenue
decline in the fixed voice and sales of telecommunications
equipment.
Price elasticity:According
to the result of our price elasticity analysis
of NTT DSL tariffs for Q1 2005 and Q1 2006,
the demand for DSL broadband is elastic to the
change of tariffs, as the arc elasticity ratio
is 0.35. In other words, for every drop in the
cost of bandwidth by one Euro there was a net
gain of 377,600 new subscribers since Q1 2005.
On the other hand NTT FTTx price elasticity
analysis for the same period reveals that the
demand for FTTx technology is much more elastic
as the arc elasticity ratio is
0.49 which means for any decrease in the bandwidth
cost by one Euro, the number of FTTx technology
subscriber has been increased by 4.2 million.
Broadband packages:
the DSL tariffs start from 37 Euro for a flat
rate of 1.5Mb for the residential market to
41 Euro for a flat rate of 40 Mb in the business
sector. There is a recurring cost for hardware
rental, Set-Up fee and Installation. The FTTx
prices start from 33.5 for a flat rate of 100Mb
for the residential market to 298 Euro for the
same speed for the business subscribers.
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you would like to access to our online tariffs
database for over 80 countries please
click
here
For more information
about this press release or this research brief,
please contact us at
info@quantum-web.com
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understanding and a first-rate research methodology.
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