FTTX EMPOWERS APAC
FTTx technologies looking set to empower APAC
According to a range of market surveys from FTTH Council Asia, iDATE and Ovum, the APAC region is set for strong fibre growth. Kendrick Struthers-Watson reports on the diverse growth rates and technology preferences from China to Australia via Vietnam.
Within this massive region there is relatively low competition between other xSDL or cable networks. Cable companies are less dominating in these territories’ broadband markets than they are in Europe or the USA although, as China progresses towards a more competitive market mode, SARFT (State Administration of Radio, Film and Television – the national regulator) could be expected to make progressive changes to this scenario. Interestingly, across the whole APAC region the optical fibre network architecture deployed is split 23% FTTH and 77% FTTB and there is a stark difference on the technology deployed, with PON at a dominating 98% and Ethernet at just 2%. By the end of 2016, it is anticipated that nine economies will reach FTTH/B household penetration of 20% or greater and these are: Hong Kong, South Korea, Singapore, Japan, Taiwan, New Zealand, China, Malaysia and Australia. Vietnam: great potential One of the member countries offering the most potential is Vietnam and, according to the latest figures from a study by Ovum, up to 98.8% of homes there do not yet have a fibre connection. The study urged telcos to continue the move away from targeting high- income earners and focus on providing cost-effective solutions that are tiered to individual and business needs. In addition to retail broadband solutions, the Ovum study recommended that telcos should consider alternative business models such as
(Japan 100%, Singapore 95%, South Korea 95%, Hong Kong 93%, Taiwan 89%) and the remaining three, China, New Zealand and Malaysia, have 59%, 32% and 26% respectively. China has the largest number of subscribers at just less than 70m and there is strong competition between China Telecom and China Unicom, respectively, with 42m and 25m at the end of 2014. Although involvement in FTTH/B was not adopted as early as many of the other APAC FTTx players, it is today the main focus for the Chinese telcos. Next in the ranking is Japan, which was the historical market leader in the region, although FTTx deployment growth has been slowing at a low rate with only 4% added in 2014. With its 26m total subscribers, NTT, Japan’s incumbent provider, is strong on the wholesale area, but its offering remains complex with different tariffs dependent of the type of dwelling. Furthermore, users must subscribe to a telco for a connection line and then to a service provider to acquire services. In South Korea, KT is the market leader with 13m subscribers. According to FTTH Council APAC, there remain several challenges and drivers for the region where Multi-Dwelling Units (MDUs) dominate the residential market in China and it sees a huge potential from a 550m population across Bangladesh, the Philippines, Vietnam and Pakistan.
According to the latest data from FTTH council Asia Pacific and iDATE, at the end of 2014 there were 155m subscribers in APAC and the Council anticipates that by 2019 this figure will exceed 174m. The graphic below depicts the statistical growth of the country members of FTTH APAC and uses FTTH/B as a measure of Fibre to the Home/ Fibre to the Building. In the top eight countries, five now have greater than 85% of total households passed,
T he growth of fibre optic across the world is rampant and nowhere less so than in the Asia Pacific region which is made up of 15 countries, three of which have more than 10m FTTH subscribers (China 68m, Japan 26m and South Korea 13m). Kendrick Struthers-watson
Take up rate at December 2014 FTTH/B Subs/ Homes Passed
December 2014
APAC Countries
FTTH/B subscribers (*)
FTTH/B Homes/ Buildings passed
Australia
289,000
899,345
32% 27% 66% 33% 51% 48% 13% 5%
China
68,340,000 1,515,000
249,000,000 2,300,000 2,072,000 3,420,000 51,000,000 1,730,000
Hong Kong
India
689,000 161,000
Indonesia
Japan
26,029,000
Malaysia
828,000 75,301 16,900 65,000 708,100
New Zealand
570,221
Pakistan
na
0%
Philippines Singapore South Korea
300,000
22% 62%
1,150,000 17,500,000 6,840,000 1,244,000
13,053,020 3,120,000
0%
Taiwan
46%
Thailand Vietnam TOTAL FTTH/B(*)
85,000 810,000
7%
na
na
115,785,021
338,025,566
34.3%
(*) We refer here to the definition of FTTH/B from the FTTH Council
Growth will exceed 174 million subscribers in 2019
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ISSUE 5 | Q3 2015
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