Econometric Approach for Broadband Market in Japan

We investigated the growth in the Japanese broadband market. We analyzed price elasticity and changes in the broadband market in 2009 by comparing those of the market in 2005, which we consider the growth stage of Fiber-To-The-Home (FTTH) service in terms of econometrics. Through analysis, we found that users feel FTTH service fees are reasonable and that the service is used among high- and low-income households. We also believe that FTTH service is no longer for users who use the Internet for heavy downloading activities, such as P2P file sharing. Furthermore, FTTH fees have becomes less elastic than in 2005.

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