California-based Teknovus, a leading provider of Gigabit Ethernet Passive Optical Network (GEPON) chips for the deployment of triple-play services in fibre-to-the-home (FTTH) and fibre-to-the-business (FTTB) broadband access networks, has signed a contract with KDDI of Japan for the supply of TK3714 Turbo EPON ONU microchips. Compliant with IEEE 802.3ah 1.25G EPON specifications, the chip offers an enhanced Turbo EPON mode for 2.5G operation, giving service providers the ability to deliver faster speeds to their customers with the same built-in IPTV architecture and quality of service developed by the American vendor. The Turbo chip will enable operators to offer more HDTV channels using existing fibre plants thereby reducing CAPEX and OPEX per channel.
KDDI is a leading Japanese service provider offering both mobile and fixed communications services. Commenting on the Teknovus deal, Mr. Shigeo Morita, Senior Manager of KDDI’s Terminal System Development, said: ‘We are experiencing fast FTTH subscriber growth for our triple-play services, known as Hikari One. Teknovus’ EPON chips enable us to rapidly and cost-effectively meet the growing bandwidth requirements of our subscribers’. According to TeleGeography’s GlobalComms database, in April 2006 KDDI and Tokyo Electric Power Co (Tepco) agreed to merge their fibre-optic network operations as they look to take on bigger rivals in Japan’s broadband industry. The pair hope to amalgamate their fibre-optic businesses by 1 January 2007 and in October 2006 announced that KDDI Corp would acquire Tepco’s fibre-optic network for JPY115 billion (USD965 million), in an effort to compete more effectively with former monopoly Nippon Telegraph & Telephone (NTT’s) internet business. Once completed, KDDI will become Japan’s third largest provider of fibre-optic services in the country after NTT and Usen, and the merger will allow it to reduce its dependence on other carriers’ networks and benefit from lower leasing fees.