US and Japan FTTx Access Technologies Enter the Gbit/s Era

Driven by broadband access services, the US and Japan are upgrading their FTTx access technologies. As of the end of November 2009, the total average downstream data bandwidth of Japanese broadband users (FTTH/DSL) was 1.36 Tbit/s, an increase of 37.9% over the previous year. Of the total average downstream data bandwidth, the six major broadband ISPs (NTT Docomo, KDDI, SoftBank BB, and SoftBank Telecom, etc.) accounted for a combined average downstream data bandwidth of 539.7 Gbit/s, representing 39.6% of the national total average downstream data bandwidth. The national total average upstream data bandwidth was 943.4 Gbit/s, an increase of 36.8% compared with the previous year.

According to a survey, 180 million American Internet users watched online videos in March 2010, of whom 135 million watched YouTube videos. On the YouTube website, users watched an average of 96 videos per person in March. Online video has greatly driven user demand for bandwidth.

US Government Supports Broadband Development

According to recent media reports, a report released by the US Department of Commerce on February 21, 2010 showed that the national household broadband penetration rate had increased significantly over the past two years, reaching 63.5% in 2009. In 2007, only half of American households had broadband connections. Although the overall national broadband penetration rate has improved significantly over the past two years, significant gaps remain among different income, age, and ethnic groups. In addition, statistics show that 46% of American rural households currently cannot access broadband services, compared with only 34% for urban households. However, the proportion of rural households unable to access broadband services has decreased substantially over the past two years, down from 61% in 2007.

The US has strengthened policy support for broadband access in order to resolve the last-mile network bandwidth bottleneck as quickly as possible. According to the WiMAX Forum, the National Telecommunications and Information Administration (NTIA) and the US Department of Agriculture have begun accepting broadband access applications. On March 16, 2010, the US Federal Communications Commission (FCC) submitted the National Broadband Plan to Congress, which is regarded as the action program for the broadband component of the economic stimulus plan proposed by the Obama administration in 2009.

When releasing the National Broadband Plan, the FCC acknowledged that nearly 100 million Americans still do not have broadband access at home. According to statistics, the ranking of US household broadband penetration among OECD member countries has continuously declined from 4th place in 2001 to 15th place in 2008, which has drawn the attention of the US government.

Japan Successfully Integrates CDMA into Optical Fiber Communication Systems

To date, the traditional application technology for user optical fiber communications has mainly been TDMA (Time Division Multiple Access). CDMA technology is mainly used in mobile communications and has many advantages. Japan has now successfully transplanted CDMA technology into user optical fiber communication systems, attracting widespread attention. According to Japanese media reports, Japan has established an industry-academia-government OCDMA forum and has successfully launched a 50 km OCDMA experimental system, laying a solid foundation for the commercialization of OCDMA.

OCDMA (Optical Code Division Multiple Access) is a technology that transplants the CDMA technology widely used in mobile communications into user optical fiber communications, known as optical code division multiple access (OCDMA). NICT (National Institute of Information and Communications Technology, an independent administrative agency of Japan), with the assistance of Osaka University, Fujikura Ltd., and NTT, has successfully developed an experimental line using OCDMA technology that can carry 8 users on a single optical fiber, with a maximum rate of 10 Gbit/s per user, and can transmit over 50 km. Moreover, the same wavelength was used for bidirectional communication, which is a world first. Currently, the maximum transmission rate provided to users on Japanese user optical fiber is only 100 Mbit/s. Based on this successful experiment, the user rate could be increased by 100 times, which has attracted considerable attention.

Convergence of Triple-Play Terminals Is Becoming Increasingly Evident

Currently, the performance of triple-play terminals such as telephones, televisions, and computers is increasingly converging, and their application integration is becoming more prominent, driving the rapid development of broadband services.

According to a survey report published by the US research company Nielsen in March 2010, the number of US mobile users using multifunctional smartphones such as iPhone, BlackBerry, and Android is growing rapidly. According to media reports, Verizon will begin offering unlimited Skype VoIP telephone services to its smartphone users on its 3G network starting in March 2010. Under the agreement between the two companies, Skype will provide a mobile version of the Skype application to Verizon 3G network smartphone users starting in March.

Skype, which currently holds an absolute advantage in the VoIP market, has also entered the Verizon network. When using Skype services through Verizon's mobile communications network, Skype users can make calls to users in the US and abroad. The call billing method is the same as for Skype users using computers. The most notable feature of Skype Mobile is that it enables long-duration connections and allows users to clearly see the online status of friends. As can be seen from the above, smartphones now possess certain functions of computers and televisions.

In terms of television, according to reports, Internet TVs jointly launched by Panasonic, South Korea's LG, and Skype in January 2010 began selling in the market. On January 5, 2010, Skype announced that its services would be available to Panasonic and LG TV users, allowing these TV users to make free calls to each other and to call fixed-line and mobile phone users. This type of device was exhibited at the Consumer Electronics Show held in Las Vegas. Japanese software developer KADENZA announced on December 21, 2009 that it had developed a broadband Internet TV that uses Intel chips and Microsoft's Windows XP operating system. This broadband TV allows users to watch digital TV programs as well as online videos. Today's television functions are expanding toward computers and telephones.

Link: FCC National Broadband Plan Goals for the Next Decade

At least 100 million US households should have affordable access to broadband services with downstream speeds greater than 100 Mbit/s and upstream speeds greater than 50 Mbit/s;

The US will place greater emphasis on widely deployed wireless networks, striving to lead in mobile innovation;

Every American should have affordable access to broadband services;

Every American community should have broadband access at speeds greater than 1 Gbit/s, allowing residents to access schools, hospitals, and government institutions;

To ensure the safety of the American public, every first responder should have access to an interoperable, secure nationwide wireless broadband network;

To ensure US leadership in the clean energy economy, every American should be able to track and manage their energy consumption in real time through broadband;

Over the next decade, the existing Universal Service Fund (USF) will be expanded to $15.5 billion.