OE Solution Breaks into Japan's NTT Wired Network Market... "Revenue to Accelerate"

Optical transceiver manufacturer OE Solution announced on the 30th that it will begin mass supplying 10G EPON OLT optical transceivers for Fiber To The Home (FTTH) to NTT, Japan's largest telecommunications operator, for use in its wired network.

OE Solution has grown its business over the past several years with optical transceivers for 5G wireless communications as its main product. However, due to a recent decline in investment in the 5G market, the company is now fostering optical transceivers for FTTH as a new growth engine as part of its market diversification strategy.

FTTH (Fiber To The Home) is an optical subscriber network method for ultra-high-speed internet services. As the market transitions from 1G or 2.5G speeds to 10G speeds, demand for these products is steadily increasing.

After successfully localizing the production of 10G-class PON OLT and ONT optical transceivers used in the wired FTTH and MSO CATV (cable TV) markets, the company focused on supplying to KT and LG U+ in Korea. However, with the limited size of the domestic market, there were constraints on long-term growth, so OE Solution has been pursuing revenue diversification through overseas expansion.

As a result, the company received approval from NTT in Japan, a market with high entry barriers, by demonstrating its technological capabilities and production capacity. OE Solution is now creating success stories in Japan's FTTH market, which is both large and stable.

Orders have been steadily increasing this year. The company expects to generate more than 10 billion KRW in new revenue from this product alone. OE Solution has received requests to double its current production capacity and plans to ramp up production in the second half of this year.

Park Yonggwan, President of OE Solution, played a significant role in expanding the supply of 10G EPON OLT optical transceivers for FTTH to NTT through his global networking efforts. Over the past decade, President Park has visited many Japanese clients, meeting with major telecommunications operators such as NTT and KDDI, as well as telecommunications equipment manufacturers, thereby laying the groundwork for expanding strategic business partnerships in Japan.

Focusing on building mid- to long-term cooperative relationships tailored to the characteristics of the Japanese market and its customers, rather than pursuing short-term results, was a key factor. Currently, the company is collaborating with Japanese telecommunications operators, equipment manufacturers, and component suppliers to prepare next-generation FTTH products and solutions for artificial intelligence (AI) data centers.

Lee Wonki, Vice President of OE Solution, stated, "In the FTTH market, building long-term trust with operators and telecommunications equipment manufacturers, as well as jointly investing in next-generation technologies, is crucial," adding, "We will contribute to the advancement of NTT's FTTH network and the development of next-generation AI Data Center Networks by supplying excellent products based on OE Solution's advanced technology."