Asian broadband ascendancy not transferring to the bottom line

摘要

Broadband champions South Korea and Japan are learning that high broadband penetration rates do not automatically translate into high average revenue per user (ARPU). Though 80 per cent of South Korean households have broadband, lack of revenues led the third- and fourth-largest players in the market, Thrunet and Onse, to enter into receivership last year. The same threat looms over the second-largest player, Hanaro Telecom. Even the incumbent, Korea Telecom, is failing to break even on its broadband service, and cut its workforce by 12 per cent at the end of 2003. In Japan, where penetration stands at more than 20 per cent of households, it is well known that the growth in broadband telephony through VoIP is undermining the traditional voice services of incumbent NTT. And NTT's promotion of its VoIP service in response to competition is cannibalising its own voice business.