Telecom services generated 12.5 trillion yen in revenue in 2008, a decline of 1.2 percent compared to 2007, Pyramid reports. Because of the yen's soaring appreciation on world currency markets, the value of Japan's telecom services grew by 11 percent in 2008, when measured in U.S. dollars, to $120.4 billion.
"The main growth engine will be data services, in both the fixed and mobile sectors. Revenue from mobile data will grow at a 7.2 percent CAGR during the next five years, driven by increased mobile Internet usage," notes Tae-Hyung Kim, analyst at Pyramid Research and author of the report. "In the fixed sector, migration to fiber from DSL and VoIP uptake will be the key drivers for revenue growth. As such, revenue from broadband and VoIP will grow at CAGRs of 6.1 percent and 10.4 percent, respectively," he adds.
"Given favorable policies for convergent services, especially regarding IPTV, we also forecast that revenue from IPTV will grow at a CAGR of 25.6 percent during the next five years," Kim says. "The Japanese telecommunications regulator will have to make some important decisions in 2009 with regard to IPTV and spectrum licensing. Content sharing and distribution is a make or break issue for IPTV players, and the regulator must find a stance that can effectively address the concerns of interested parties. With regards to LTE, the regulator must also find ways to offer more than just two licenses if it wishes to keep the market competitive."
