As of 2012, Japan has over 21.9 million FTTH subscribers, with projections to exceed 30 million by March 2016. The country's optical broadband network is entering a new era characterized by mobility and cloud integration. NTT's 10G-EPON technology is currently ready for commercial use, demonstrating successful field trials.

1. - Panel 2: EPON deployments -
Case Studies from Japan
April 20, 2012
Ken-Ichi Suzuki
NTT Access Network Systems Laboratories,
NTT Corporation
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 1

2. Global market of FTTH
 Huge demand mainly in APAC is continuing （ Worldwide CAGR 25 % ）
 FTTH has already been spread in East/North Europe, Middle-East Asia
 In CALA, widespread of FTTH will soon launch
Number users (K)
Global forecast of the number of FTTH user
The world ranking of FTTH penetration
From Infonetics Research Analysis March 11
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 2

3. Progress of Broadband Infrastructure in Japan
 NGN service has almost covered over Japan （Population coverage 90 %）
 Number of FTTH user exceeds to 20 M. Market of FTTH will be matured.
 Development of optical broadband network will be facing a new era.
Number of FTTH user (M)
Number cellular user (M)
From NTT’s annual report 2011
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 3

4. Progress of broadband service in Japan(1)
 The number of FTTH subscribers is expected to exceed
30 million by the end of March 2016.
The end of The end of
Mar. 2012 Mar. 2013
(Forecast) (Forecast)
4000
40
The number of subscriber (Million)
3500 37.00
30
3000 Over 30M
24.75
Broadband (Total)
2500 21.89
FTTH (Total) Over 20M
20
2000
18.14
16.31
DSL
1500 FTTH(NTT)
10
1000 7.06
5.47
CATV internet
500 5.91
0
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year Press materials, Ministry of Internal Affairs and Communications of Japan,
“Quarterly data on the number of subscribers, etc., of electrical
communication services in Japan”,
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 4

5. Progress of broadband service in Japan(2)
Others
2.85M (7.5%) Others
10.44M (27.7%)
DSL
7.06M (18.7%)
NTT
CATV Internet 20.3M (53.8%)
FTTH (Total) 5.9M (15.7%) KDDI
21.9M (58.1%) 2.19M (5.8%)
E-Access
1.81M (4.8%)
SBB
2.98M (7.9%)
The number of subscribers of
Market share of broadband
broadband services in Japan (37.7M)
services
Others
1.52M (7.5%)
DSL
2.45M (12.1%)
MDU FTTH
8.62M (39.4%) SFU FTTH
10.12M (49.9%)
SFU FTTH MDU FTTH
13.27M (60.6%) 6.19M (30.5%)
Press materials, Ministry of Internal Affairs and
Communications of Japan, “Quarterly data on
the number of subscribers, etc., of electrical
communication services in Japan” (at the end of
Dec. 2011)
FTTH services (21.9M) NTT’s broadband services (20.3M)
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 5

6. Progress of broadband service in Japan(3)
 NTT has a share of 74.5 % and 16.3 million subscribers of FTTH services
(Flets-Hikari).
 NTT has over 13 million subscribers of IP Telephony services (Hikari-
denwa) via FTTH Services.
KDDI
2.01M (9.2%)
Electric Power
Supply Company
1.99M (9.1%)
NTT West UCOM
7.09M (32.4%) 0.48M (2.2%)
Others
1.09M (5.0%)
NTT(Total)
16.31M (74.5%)
NTT East
9.22M (42.1%) Press materials, Ministry of Internal Affairs and
Communications of Japan, “Quarterly data on
the number of subscribers, etc., of electrical
communication services in Japan” (at the end of
Dec. 2011)
Market share of FTTH Service (Total 21.9M)
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 6

7. Cloud & Broadband Optical Services
 Keep connectivity will be easily possible anytime and anywhere
 Possible to get personalized information whenever we want
 Optical and wireless converged broadband will be an important key role
Application Storage Video delivery
Home Wireless Server Server Server
Access School
Health
Cloud Computing Recreation care
Backbone NW (NGN) Shopping Transportation
Broadband & Ubiquitous NW
ONU
(Optical Access
& Broadband Wireless)
High-speed Tablet handset
wireless access WiFi （ipad、GalaxyTab、etc）
router
WiFi
Smart phone
Smart book
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 7

8. Broadband Optical Service with High Mobility
 Portable wireless router (Hikari-portable) provides optical services high mobility.
 Need to offload the mobile traffic (wireless) to optical access (wired).
 Broadband services is personalized by means of various “smart handset”
ONU
OLT
Transport
Public Wireless LAN Network
ONU OLT
Hikari-Portable
Mobile
backhaul
Network
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 8

9. Requirement of Broadband Access
 Advanced video services equipment and changing ways of watching
video services will spur further bandwidth demand.
 “mobile traffic expansion issue” would be solved by optical access.
 Expected Next-generation optical access as a significant platform for
future broadband ubiquitous services
Required Bandwidth (Mbps)
1000 Next-Generation
-High Definition 4k, PON
SHD (118Mbps@H.264)
100 -Multiple Channel LTE-
-3D Screen
1G-EPON limit advanced
IP-TV LTE
10
Web HSDPA
E-mail
1 2000 2005 2010 2015
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 9

10. CAPEX/OPEX reduction
 Operators keep CAPEX reduction strategy for strength of financial basis
 Higher capacity network will lead to increase of network
 Cost reduction per user to the same level as the existing system is key
400 22
Revenue/Cost per user
CAPEX to sales (%)
Invest of FTTH (B)
Cost
300 20
200 18
Revenue
100 16 Target
cost
0 14 1G shared 10G shared
06 07 08 09 10 11
now future
Bandwidth per user
From NTT’s annual report 2011
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 10

11. 10G-EPON Field Trial
 100km uncompressed HD video signal transmission using 10G-EPON
 Development of wide-area Dynamic Bandwidth Allocation (DBA)
 Remote performance monitoring of PON extender located outside plant
Hokkaido pref.
A : Sapporo
B : Eniwa
C : Chitose
D : Toyohira Optical
(a) (c) amplifiers
A D
B
C 10G-OLT
10G-ONUs
NTT Access Network Service Systems Laboratories April Fujiwara SIEPONOFC/NFOEC2012, PDP5D5
20, 2012 et al. Seminar, Prague, Czech Republic 11

12. Summary
The number of FTTH subscribers exceed 21.9 million now
in Japan.
That is expected to exceed 30 million by the end of March
2016.
Development of optical broadband network will be facing a
new era “Mobility” and “Cloud”
10G-EPON is ready for commercial that has flexible
system configuration and its feasibility was confirmed
demonstrating field-trial.
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 12

13. Thank you!
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 13

14. Introduction
Continuous large investment led the highest FTTH
penetration ratio in Japan.
It makes possible to provide low cost FTTH services.
Profitable services will be needed in order to increase ROI
and/or ARPU and achieve a continuous growth of Telecom
carriers
NTT Access Network Service Systems Laboratories April 20, 2012 SIEPON Seminar, Prague, Czech Republic 14