Japan has the highest broadband average revenue per user in East Asia. Ranking as the world's third-largest fixed-broadband market, with an estimated subscriber base of 40.9 million, Japan generated ¥1.68 trillion in broadband revenue in 2019. As the demand for higher-speed broadband grows, penetration is projected to increase gradually from 76.5% in 2019 to 86.3% by 2029, amounting to broadband revenue of ¥2.19 trillion.
Demand for higher-tier fiber plans is expected to increase as 4K and 8K content streaming is becoming popular in the market. Sony Corp.'s Nuro, which in 2015 became Japan's first consumer fiber service with download speeds of up to 10 Gbps, now costs at ¥5,743 ($52.43) per month. KDDI Corp., on the other hand, prices its bundle of 10 Gbps service and voice at ¥6,380 ($59.76) per month. While some operators such as SoftBank Group Corp. have raised the download speeds of their entry-level plans to up to 1 Gbps, Nippon Telegraph and Telephone Corp. and KDDI still provide lower-cost plans with download speeds of up to 100 Mbps. As Japan's largest fiber operator, with 7.9 million retail households as of year-end 2019, NTT offers the market's lowest-cost plan, at ¥2,000 ($18.26) per month, with download speeds of up to 100 Mbps.
As of year-end 2019, satellite and fixed wireless each made up a minimal 0.01% of Japan's fixed broadband subscriptions. That said, satellite ARPU is projected to be the highest in the market at ¥5,897.52 per month in 2019. Despite slight fluctuations, satellite monthly ARPU should remain at relatively the same level, modeled at ¥5,848.10 for 2029.
As the Japanese yen has fluctuated against the U.S. dollar in the past 10 years, ARPU and revenue estimations are quoted in yen.
As of March 5, US$1 was equivalent to ¥106.76.
Global Multichannel is a service of Kagan, a media market research group within S&P Global Market Intelligence's TMT offering.