Japanese telecommunications carrier KDDI is to start offering 1Gbit/s fibre optic Internet hook-ups for less than the current price of a connection one tenth the speed.

The Hikari One Home Gigabit service will cost ¥5,460 (£28) per month and provide an upstream and downstream connection at 1G bps. Internet-based telephone service and cable TV service can be added to the connection for an additional fee.

It will be available to single-dwelling homes and apartment buildings up to three floors high in the Tokyo area and Hokkaido island in north Japan. KDDI's current fibre optic service for such buildings tops out at 100Mbit/s and costs ¥6,615 while the broadly available 10Mbit/s service costs around ¥4,599.

Japanese Internet users already enjoy some of the fastest and cheapest Internet connections in the world. Aggressive investment by carriers in fiber-optic networks and the country's densely packed cities leave many homes and buildings within easy reach of a fibre optic connection.