NTT to invest $47 billion in major fiber-optic network in Japan

Fiber Optics Weekly Update, Nov 5, 2004

Telecom giant Nippon Telegraph and Telephone Corp. (NTT) will spend more than five trillion yen ($47 billion) to bring a fiber-optic network to half of Japan's fixed-line subscribers, a newspaper reported.

NTT is to announce the project as early as November 7, 2004, when the company unveils its medium-term business plan, the Nihon Keizai Shimbun reported.

Under the plan, NTT will upgrade the communications lines serving 30 million households and offices to fiber-optic lines by 2010, affecting half of the nation's fixed-line telephone subscribers, the report said.

The major expansion in fiber-optic technology would be a big boost for the use of videophones and video transmission via the Internet, and spur development of products such as broadband-compatible televisions, it added.

The maximum data transmission speed on copper wires for analog fixed-line phone services is 56Kbps. Fiber-optic lines allow speeds of up to 100Mbps, making it possible to send and receive large files such as high-quality video.

NTT hopes that the broadband communications network will enhance its competitive edge over rival KDDI Corp. and other telecom carriers in the sector.