Broadband: more FTTH broadband subscriptions in Japan than in all of EU + Norway + Switzerland + Iceland

Broadband: more optical fiber (FTTH) broadband subscriptions in Japan than in all of Europe. Read our detailed market report of Japan's broadband markets

Japan has more broadband fixed internet subscriptions than all of the European Union + Switzerland + Norway + Iceland

While Japan initially was late in waking up to the commercial introduction of the Internet – Japan was fast to catch up and overtake

Japan alone currently has about 30% more FTTH optical fiber broadband subscriptions than all EU countries + Switzerland + Norway + Iceland added together.

How much broadband (ADSL, xDSL and FTTH) is installed in Japan? Find the answer and detailed statistics and market shares in our report on Japan’s telecom industry.

Japan was first to roll-out mobile internet with i-Mode in February 1999

Similarly, Japan was far in advance of other countries in laying the foundations for the mobile internet, with the introduction of the DoPa (DoCoMo Packet) packet switched network on March 28, 1997, several years before packet switched networks were introduced in EU and elsewhere. However, Japan’s electronics and telecoms industries largely failed to capture global value from this pioneering work. Essentially only Softbank with the SPRINT acquisition now has hope to capture such global value.

A very interesting point is that in EU there are many discussions and uncertainties how broadband fiber investments can be profitable. Japan has solved this problem: FTTH business in Japan is profitable. We see arbitraging opportunities in capturing value from Japan’s know-how, similar to Softbank’s “time shift” investments, arbitraging the time shift of internet roll-out in US vs Japan vs China, as explained in our Softbank-report.

Broadband: about 30% more FTTH subscriptions in Japan than in all of EU + Switzerland + Norway + Iceland
about 30% more FTTH subscriptions in Japan than in all of EU + Switzerland + Norway + Iceland

Japan has 30% more FTTH fiber broadband subscriptions than EU + Switzerland + Norway + Iceland…

Several years ago the EU engaged our company Eurotechnology Japan KK to benchmark EU vs Japan in fixed and wireless broadband. Our summary was that broadband connections are the lifeblood of our information society, and that Japan was far ahead of EU in providing and using both fixed and wireless broadband, and broad band fiber connections were much faster and cheaper in Japan than in EU. Although both have progressed since our benchmarking work for the EU, Japan is still very far ahead of EU in terms of fast fiber broadband penetration.

Capturing global value – Japan’s Galapagos effect

However, provision of broadband fiber connections is only one side of the coin. The other side of the coin is capturing value and creating wealth for the society. The really important point is, whether Japan’s electronics, telecoms, content and service industries can capture global value from the advanced deployment of broadband infrastructure. As we discussed in detail in the “Post-Galapagos working group”, Japan is being held back by the “Galapagos effect” – and the trick will be to make the necessary changes to break out from this trap.
Read detailed analysis in our Japan-Telecommunications-Industry Report

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