Competition Promoting Unbundling of PON

In Japan, PON (Passive Optical Network) systems are deployed nation wide by NTT (Nippon Telegraph and Telephone) and optical fibers are regulated to be unbundled at reasonable price for PON service to promote the competition. However, the competition is not really promoted, because average cost of a fiber divided by the average number of subscribers for each fiber is greatly different between competitors with different shares. To really promote competition, two approaches are proposed: one is to vary fiber unbundling price proportional to the number of subscribers of each fiber; the other is to share PON equipments between competing network operators and to demultiplex in a station at L2 (layer 2).