Japan Telecom Forecast FY06

Market trends with a positive impact on the total figure in FY2006 were robust IP and fiber optic markets pushing up shipment of routers, LAN switches and digital transmission equipment, expansion of cellular phone services, increasing demand for base station communication equipment, and the growth in multipurpose office equipment as businesses aim for improved efficiency and compliance. However, the figure for cellular handsets is expected to have remained the same as FY2005, leading to the FY2006 forecast figure of 4.332 trillion yen, a relatively flat growth over the previous year.

In FY2007, fierce competition among cell phone manufacturers concentrating on replacement and upgrade demand will fuel cuts in handset prices, pushing the value of shipments further downwards, so that even with growth in IP and fiber optic communications and multipurpose office equipment, the overall figure is expected to decrease. Download the full report [.doc] Here.