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February 2006 -- Ellacoya Networks provides broadband operators with an IP service management platform that enables operators to analyze and manage high-speed data traffic by application and by activity.  This platform provides a complete and scalable solution for building intelligent broadband networks and ways to deliver new, revenue-generating services including VoIP, IPTV, and more.

Opportunities in Japan
Japan’s 10 million ADSL (asymmetric digital subscriber line) subscribers, 1 million FTTH (fiber to the home) subscribers, and 30 million FTTH subscribers planned for 2010 led Ellacoya Networks to open an office in Japan.  The Japanese Internet access market has been growing at an average rate over 25% each year since 2000 to reach a value of $8.5 billion in 2004. 

This market runs on what Mark Wilson, president of Ellacoya Networks KK, calls ‘one of the most advanced broadband infrastructures in the world.’  “We expect Japan to be at the forefront of innovation both in wired and wireless telecommunication services,” said Wilson.

Market Entry
Ellacoya Networks’ goals for Japan were to establish Japan as the headquarters for the company’s Asia Pacific region and to further its penetration into Japan within both ADSL and CATV (cable TV) service providers.  “Japan would serve as a reference-able market for further expansion into other countries in the region,” said Wilson.

Wilson began talking with JETRO representatives for help establishing the Japan office in January 2004.  He received an overview of the office setup process and estimated costs for different operation types from JETRO’s business case outline.  In June 2004, Wilson relocated to Japan and used the free temporary office space at JETRO’s Invest Japan Business Support Center (IBSC) for two months as an operations hub to handle day-to-day business.  Ellacoya Networks KK was registered at the end of July 2004.

“All of JETRO’s services were helpful,” said Wilson, “but I cannot emphasize enough that the people within JETRO were the most helpful at all times and make all the difference.”  JETRO connected Wilson with counselors for tax, immigration, corporate, and employment issues and with professionals who helped him search for permanent office space.

Results and Outlook
The opportunities in Japan have led Ellacoya Networks to have more installations of its products there than in any other country in the region.  “Japan continues to be the most consistent market for growth,” said Wilson.  “Japan also serves as a great hub location to work into such large and high growth markets such as China and Korea.”

Ellacoya Networks KK’s partner relationships with large companies like Sumitomo Corporation have provided business models and sales strategies that helped double company revenues for over three consecutive years.  In addition, the company’s Japanese customers demand constant product innovation and quality improvement, which leads Ellacoya Networks to produce better products overall.

The company strives to provide the best possible service and products to the technologically advanced Asia Pacific region.  “The market is evolving rapidly now,” said Wilson, “and new services demand is increasing.  We expect to continue to grow and double our revenues at a minimum from year to year for some time to come.”