NTT cuts FTTH prices in wake of LTE competition

21 Nov 2012

In the wake of slowing subscriber growth NTT East and NTT West have cut prices for their fibre-to-the-home (FTTH) service by 34%, from JPY5,460 (USD67) to JPY3,600. The move is widely seen as a measure to stem the flow of customers leaving fixed broadband services in favour of mobile broadband platforms such as Long Term Evolution (LTE). According to TeleGeography’s GlobalComms Database, NTT’s net addition of FTTH subscribers fell from 2.046 million during the twelve months ending June 2010 to 1.756 million in the twelve months ending June 2011, and fell further to 1.277 million over the twelve months to June 2012. Australian technology news site Delimiter cites sources at NTT East and NTT West as being convinced that the main reason for the slowing FTTH take-up is due to many younger users preferring not to pay for a household-based FTTH service when they are already paying for their own smartphone LTE data plan. Unlike its smaller rival KDDI, NTT is prohibited from offering FTTH and LTE from its subsidiary NTT DoCoMo in a single bundled offering.

Japan, NTT (NTT East & NTT West)