Summary of Research Findings

The APN (All Photonics Network) is a technological concept designed to enable high-capacity, low-power, and low-latency data transmission by minimizing electro-optical conversions. The government positions APN as a core communication infrastructure capable of supporting the massive growth in data traffic expected in the future, while maintaining low energy consumption and low latency. APN is anticipated to serve as a foundational technology supporting Japan's transition toward Society 5.0.
In the market report, we present a conceptual diagram illustrating three potential APN deployment scenarios based on differing assumptions about market conditions. The diagram plots time on the horizontal axis and the number of APN hubs on the vertical axis.

Scenario 1 (Downside Scenario) assumes that APN technology will be solely adopted by major data centers. Driven by the strong demand for generative AI, large-scale cloud service operators—often referred to as hyperscalers—are deploying APN. As seen in the initiative like Watt-Bit Integration, it is likely that APN will be adopted as communication link between data centers. This will lead to a slight increase in the number of APN hubs.

Scenario 2 (Base Case Scenario) entails the implementation of APN within mobile fronthaul and telecom buildings. Development of a common APN infrastructure enables seamless optical fiber network-based connection among multiple carriers. Moreover, once APN is deployed for mobile fronthaul (the optical fiber connecting antenna to controller unit) of 5G base stations, there is a high chance that hubs will be implemented to telecom buildings nationwide. This scenario envisages that APN will be utilized primarily by the telecom carriers as infrastructure, i.e., not used directly by general businesses and consumers.

Scenario 3 (Upside Scenario) presumes that rising corporate demand stimulates extensive utilization of APN, with APN devices standardized, downsized, and economized. APN transceivers will be housed in micro data centers across the country, and hubs will be established in facilities of general businesses as well. This would enable various use cases, for instance, of sending large data from nearby IoT device (like automobile) to cloud and receive AI-analyzed result back via IoT device. With Scenario 3, intelligent society envisioned by Society 5.0 is achievable.

Noteworthy Topics

Development of Viable Use Cases Needed for Wide Adoption of APN

To achieve the broad adoption of APN that many stakeholders anticipate, there is broad agreement across the industry that the development of viable use cases will be critical to its future.
At present, efforts to develop APN use cases are largely driven by telecoms. Many user companies (general businesses that consume telecom services) have yet to seriously explore business applications that fully leverage APN’s capabilities, such as high-capacity, low-power, and low-latency communications.
Although APN remains at an early stage as a technological concept, APN services have already been launched for corporate customers. In anticipation of potential societal changes, businesses in broad sense will need to start envisioning new business models that make effective use of the advantages APN brings to next-generation communications.

Research Outline