Fibre optic internet connections are now gaining at a greater rate than ADSL in Japan, according to recent research.

More than 5.35 million Japanese homes and businesses were using fibre-to-the-home (FTTH) as their main internet connection in March, Tokyo-based Multi Media Research Institute (MMRI) reported.

Japan's fibre subscribers will exceed 19 million by 2008, the firm predicted. "The number of FTTH subscribers doubled compared to the previous year," the research firm said.

"In contrast, [growth in] ADSL subscriptions, which had been the major factor of market expansion, declined considerably."

ADSL showed only a slight increase, from total subscriptions of 13.7 million in fiscal 2004 to 14.45 million in 2005.

Consultants Dittberner Associates announced recently that Japan added 2.5 million FTTH subscribers in 2005, making up 80 per cent of the entire FTTH market.

FTTH penetration in Japan is now growing at a rate of three million subscribers per year. The government wants to continue at this pace, eventually reaching 30 million homes.

Currently, half of Japanese households have some form of fibre internet connection available.

"Video, IPTV and other high bandwidth applications are driving demand for Passive Optical Network and Ethernet FTTH equipment all over the world," said Jeff Heynen, an analyst with US-based communications research specialist Infonetics Research. 

"Passive Optical Network is very strong in the Asia Pacific region, particularly Ethernet Passive Optical Network, which is huge in Japan and will roll out in China soon as well."