The situation is such that many young subscribers prefer just one broadband subscription (LTE), instead of a combination of FTTH and LTE. It should be noted that the regulator does not allow NTT to sell a bundled offer of FTTH and LTE, such as a quad-play plan. Its competitor KDDI does offer such a plan. The Japanese market also has its own particular characteristics. People are often on the go, using public transport, which may mean they have less need for a fixed broadband subscription - especially young people who can meet their video needs fine with a LTE plan. It also helps that LTE in Japan offers an average bandwidth of 10-15Mbps, with the characteristic low latency inherent in LTE, according to Nokia Siemens Networks.
The news has since attracted much international attention. This is not surprising, as it points to a recurring theme: is mobile complementary to fixed broadband or actually a substitute? Opinions diverge greatly.
To start with, we usually use just one connection at a time (setting aside multitasking, such as social TV with a smartphone or tablet close by while watching TV). In this sense, LTE, at least from time to time, can be a substitute for fixed broadband. At the same time, mobile is not yet suitable for massive video streaming. NTT underlines this by putting a cap of 3GB on its plans. With a download speed of 1.5Mbps, a bandwidth common when streaming on an iPad, 3GB will be used up in five hours of streaming or downloading. So, not really enough for a whole month. This figure suggests that LTE is mainly a complementary service to fixed broadband, such as FTTH. Only a light user will find LTE covers all his needs.
Only once a LTE operator drops the data caps can the technology really compete with xDSL, FTTx or HFC. But this appears unlikely, given the fact that LTE (the same as HFC) is a 'shared' access line. This means operators will continue to encourage serious work over a fixed connection, while leaving the light work (Facebook, chat, email, YouTube and other apps) to LTE.
