Ongoing Developments to Engender Growth in Telecom Sector in Japan: Ken Research
Posted on 29 August 2017 by KenResearch Technology and Telecom,
One of the most developed markets in the world is Japan telecommunication. Increasing sophisticated interest in wider application of telephone lines and willingness to adopt new technology consumers are the characteristics of Japan telecom market. Fixed-line telephony, fixed broadband internet access, mobile voice telephony, mobile broadband internet access and pay TV services are offered in Japan market mainly by three multi service operators recently.
Incumbent operator, NTT dominates the fixed line market of Japan. The major force in Japan's telecom market has been- mobile with the saturated fixed line telephony subscriber market on the basis of per household. Despite of NTT's dominance in fixed line market, new companies are being encouraged to enter and grow in the market due to more emphasis on mobile.
According to the report, “Japan - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses”, in 2016, majority of mobile subscribers in Japan have been expected to be assessing services throughout LTE networks. As the nature of market is mature, Japan mobile market remains an aggressive arena. As there is an entry of new subscription in the market, the companies are focused on acquiring more and more subscribers and also retail with existing subscribers.
Voice has persisted to maintain its importance, although majority of average revenue per user is maintained by data usage. Due to extensive competition increasing day by day, there has been a decline in ARPU and subscription is taking place from over-the-top (OTT) to messaging and voice. To ameliorate consumer retention and diversify the revenue sources away from commoditized services, there has been a rise in the focus on higher value mobile content by operators. In the initial stage of 5G network trails, numerous operators are involved. Due to expected mature mobile market, there has been a fall in ARPU and mobile content and applications are receiving focus on revenue growth.
At the end of 2017, the largest and most advanced broadcast market in the world will be possessed by Japan. Due to extensive growth in DSL broadcast technology, Japan will gain success of broadband in future. There will be less focus on cable and more focus on the investment of FttH in Japan. An increase in the popularity of the faster speed in technology platform at the expense of DSL and almost two third of total fixed broadband subscription is expected to be represented by FttH. From a single provider to now all- TV, broadband internet and voice telephony is packaged by Japan, which is an early adaptor of triple play models.
Japan has also initiated in the development of digital economy after recognizing the potential of applying ICT to improve economic development as well as social development. Readily available accessible across Japan through satellite, IPTV, cable TV and over the top (OTT) video on demand, it possesses a multiple channel pay TV industry services. UK and USA are also working towards it, and providing a room for growth in Japan and it is anticipated to prosper well in the coming years with developments taking place at a good pace.
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