We examine H-band number counts determined using new photometry over 0.30 sq.deg. to H=19, as well as H 20 counts display a relatively constant deficit in the counts of 15-20%. We investigate various possible causes for these results: In order to address the issue of the model normalisation, we examine faint number counts for the new faint photometry presented in this work and also for the LCIRS. In each case a zeropoint is chosen to match that of the 2MASS photometry at bright magnitudes. We find a large offset between 2MASS and the LCIRS data of 0.28+/-0.01 magnitudes. Applying a consistent zeropoint, the combined faint data is in good agreement with the homogeneous model prediction used previously. We examine possible effects arising from unexpected galaxy evolution and photometric errors and find no evidence for a significant contribution from either. However, incompleteness in the 2MASS catalogue and in the faint data may have a significant contribution. Addressing the contribution from large-scale structure, we estimate the cosmic variance in the bright counts over the APM survey area and for |b|>20 expected in a LCDM cosmology using 27 LCDM mock 2MASS catalogues. Accounting for the model normalisation uncertainty and taking an upper limit for the incompleteness, the APM survey area bright counts are in line with a rare fluctuation in the local galaxy distribution of 2.5 sigma. However, the |b|>20 counts represent a 4.0 sigma fluctuation, and imply a local hole which extends over the entire local galaxy distribution and is at odds with LCDM.
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