Falling circuit prices and equipment obsolescence driven by advances in communications technology
First written in FY2018. 3 of 8 entries say "Worsened", first in FY2020-Q3. Latest entry: 2026-09-03.
No other company in this theme has enough history to compare yet.
- 2026-09-03OtherTimely disclosure
「The value of fiber in submarine cables and terrestrial backhaul may fluctuate as a result of new technologies, but we believe that broad technological substitution on major and complex routes will take a certain amount of time.」
The company indicated that new technologies could change the value of fiber, while taking the view that technological substitution will take some time on major and complex routes. The original canonical thread remains unchanged. - FY2026MitigatedAnnual report
「Although we are diversifying our procurement methods to spread risk, in our international telecommunications business we procure international communications circuits under long-term contracts,」
While continuing to recognize the risks of declining communications unit prices and obsolescence of circuits procured under long-term contracts, explicitly describes risk diversification through diversified procurement methods. - FY2021-Q3WorsenedAnnual report
「The potential traffic capacity of the circuit we have put into service is almost equal to the volume of traffic currently originating from and terminating in the Philippines. The circuit's launch may therefore result in an oversupply of international communications circuits in the Philippines, leading to lower selling prices and potentially affecting the financial condition and operating results of our group.」
Following the launch of the C2C circuit, specifies the possibility of an oversupply of international communications circuits in the Philippines and lower selling prices, noting that the circuit's potential traffic capacity is almost equal to existing traffic originating from and terminating in the Philippines. - FY2021-Q1RestatedAnnual report
「Communications operators are required to pursue revenue growth through various means as communications revenue per user remains sluggish.」
Reconfirms the constraint on monetization whereby communications revenue per user remains sluggish despite increasing communications traffic. - FY2020WorsenedAnnual report
「Fees per Mbps (megabit) are expected to continue declining year after year, and communications on circuits connecting the Philippines with Hong Kong and Singapore may become oversupplied, making it impossible to recover the investment in acquiring IRUs for our C2C circuits.」
In addition to the general risks of declining communications unit prices and equipment obsolescence, specifies the possibility that oversupply could prevent recovery of the IRU investment in newly acquired C2C circuits. - FY2020-Q3WorsenedAnnual report
「However, data communications charges for mobile devices used by customers are moving toward being fixed, so operators cannot simply pass increased traffic volumes on to end users through higher charges. Communications operators are therefore required to pursue revenue growth through various means, including reducing communications costs through innovation in communications technology and expanding into service areas that use communications technology, rather than communications alone.」
In addition to the previous explanation of higher communications speeds and declining unit prices, describes the constraint on monetization arising from fixed pricing, under which increased traffic volumes cannot be passed on to end users. - FY2019RestatedAnnual report
「In the data communications industry, advances in transmission technology have increased communications speeds, and fees per Mbps (megabit) have tended to decline year after year.」
Reiterates the risks of unit price declines resulting from technological innovation and obsolescence and deteriorating profitability of circuits procured under long-term contracts. - FY2018First statedAnnual report
「In the data communications industry, advances in transmission technology have increased communications speeds, and fees per Mbps (megabit) have tended to decline year after year.」
For international circuits procured under long-term contracts, the company faces the risk that it will become difficult to enter into new contracts at prices exceeding procurement costs, and that the circuits will become obsolete.