KDDI says 900k target for fibre users ‘difficult’

24 Oct 2007

Japanese fixed line and mobile operator KDDI Corp has admitted its target of signing up 900,000 users to its fibre-optic service by March 2008 will be ‘difficult’ to meet, reports Bloomberg citing KDDI Chief Financial Officer Satoshi Nagao as saying. Poor take-up of the expensive fixed line service is said to be undermining the telco’s plan to diversify its business. He said ‘There is no incentive for customers’ to pay 34% more to upgrade to the company’s higher speed network given that its existing high speed service can already provide a more than adequate download speed. KDDI launched the FTTx service in October 2003 and had 668,000 subscribers at the end of September. KDDI charges JPY7,140 (USD62) per month for the service but also offers internet access at JPY5,313 a month for half the speed of the fibre-optic connection. Nagao says KDDI currently expects to miss its March target by 140,000 users but is committing more sales staff to its fibre-optic business in an attempt to boost sales.

Japan, KDDI (au)