Thursday, April 24, 2008

KDDI at 710K FTTH Subscribers

KDDI announced that it added 118 thousand FTTH subscribers in its fiscal year ending in March 2008 giving a total of 710 thousand. It missed its previous target of 900 thousand FTTH subscribers by a wide margin. Its target for March 2008 is 1.14 million subscribers.

KDDI stated that its FTTH ARPU was quite flat at $45 per month. It also stated that it is under significant margin pressure where it uses unbundled NTT fiber loops. In this case its gross margin is 28 percent, with 72 percent going to NTT. It believes that it will have to build out its own infrastructure to a greater expense to improve its business case.

It is not clear why KDDI will achieve its objective for FTTH subscriber growth over the next 12 months when it missed so badly in the last 12 months.

KDDI does not disclose its number of IPTV subscribers. My estimate is that that they have somewhat more that 100 thousand.

2 comments:

Anonymous said...

Hie,
Thanks for this interessant informations, but could you give your source ?

Bob Larribeau said...

The source of this information was the from the financial reports that KDDI published in April for its fiscal year ending March 31, 2008.

Bob Larribeau