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Cable TV in JapanCompetitive status in full digital age

Hiroshi ASAMI

asami@catv.or.jp

Japan Cable Television Engineering Association JCTEA)

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Growth of Cable TV subscribers

Cable subscribers increasing steadily.

Cable subscribers number reached 25 million in 2010 (46.9%

households in Japan)

(households)

1 RRI& $ 79 VXEVFULEHUV

Source Ministry of Internal Affairs and Communications

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Upgrade of Transmission Facility

Toward HFC and FTTH

Optical Fiber installation in trunk line

Trunk line gross length in Japan

Half of trunk lines are fiber optic cable

(km)

+)&

)77+

0 HWDO& DEOH

P HWDOOLQH

ILEHUOLQHOHQJWK

Number of cable operators deploying HFC

and FTTH (581 operators out of 682)

HFC

FTTH

Source Ministry of Internal Affairs and Communications

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Toward Full digital by the year 2011

Terrestrial analog TV will be shutdown in July 2011 Digital terrestrial TV standard: ISDB-T(OFDM)

Digital Cable TV standard: (64)QAM

90% households already own digital television set withdigital terrestrial tuner and HD display

Cable TV operators are transmitting terrestrial programby pass-through (OFDM) and/or QAM In addition

Analog NTSC service by digital to analog conversion tosave analog TV set

or

Free delivery of digital to analog Cable-box

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& $ 7 9

' 6/

)77+

(thousand)

FTTH includes FTTP(Fiber to the premises + VDSL)

Total Broadband subscribers reached 32 million (64.7% household in Japan)

Growth of Residential Broadband Connection

by Technology

Source Ministry of Internal Affairs and Communications

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& $ 7 9

' 6/

)77+

Broadband Connection by Technology as of

March 2010

FTTH 17.7 million

DSL 9.7

million

CATV 4.3 million

Source Ministry of Internal Affairs and Communications

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Competition with Telephone Companies

Telephone companies offering FTTH service withreasonable price, and offering TV service using IP orRF transmission.

FTTH access availability ratio is 90% of population in

2010 Fierce full competition (Television, Broadband,

Telephone)

Price example ofNTT (FTTH 100Mmax + providerfee + telephone + television(basic))

JPY5,000 (USD56)(condominium type)

~JPY9,000(USD100)(house type)

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Price of Cable Internet (120M) is JPY5250 = USD58

(1USD=90JPY)

Price competition of Cable operators (example 1)

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Price competition of Cable operators (example 2)

Triple play price with 100M internet is JPY 8,945 = USD99/M

(1USD=90JPY)

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For further development of Cable TV

Pay TV Market in Japan still small Pay TV subscribers 15 Million (less than 30% of households) ?

Multichannel Pay TV Cable: 8 million (8M out of 25M)

Satellite Pay TV: 4 million

IPTV 1 million

Pay TV growth still slow

Incumbent free to air broadcasters are still dominant although

the market is saturated

Competition with Internet Video services

Low share of Cable broadband in spite of fast speed Myth: FTTH Let there be light! , Coax: obsolete

Needs breakthrough Variety of new Service; 3D, VOD, DVR, home ICT

Cooperation among small independent cable operators

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Thank You

Our website http://www.catv.or.jp