Monitoring more than 100 companies, products, and vertical sector developments.

Wednesday, May 30, 2007

Worldwide broadband subscribers to hit 567 million by 2011

Over the past 12 months, approximately 65 million new broadband subscribers signed up for high-speed access to the Internet, reports In-Stat. By 2011, total worldwide broadband subscribers will number 567 million, almost double the current 285 million subscriber base, the high-tech market research firm says.

Recent research by In-Stat found the following:

  • DSL and cable modem services are the top access technologies, providing 92% of worldwide broadband connections.
  • By 2011, worldwide DSL subscribers will account for 58% of all worldwide broadband connections.
  • By 2011, there will be over 55 million households using a Fiber-To-The-Home (FTTH) architecture to provide broadband access.
The In-Stat research, "Broadband Gets Big: Global Broadband Subs Hit 285 Million" covers the worldwide market for broadband services. It provides forecasts for broadband subscribers by technology and by region through 2011. It also contains analysis of market drivers and barriers for each of the access technologies.

Friday, May 11, 2007

Inevitable decline in fixed line access continues in Asia-Pacific

According to Ovum, the analyst and consulting company, fixed line access continues to decline in Asia Pacific, but at a slower rate than previously.

One key finding of Ovum's recently published report 'Regional overview: Asia Pacific' which surveys developed market performance concludes: Average incumbent decline in Public Switched Telephone Network (PSTN) access lines slowed for the second year running to only 1.6% in full year ending 2006 compared to 1.8% in 2005. This rate of decline is far less than in Western Europe, which averaged 5% in the same period.

The decline in AP is being driven by the same factors as elsewhere: fixed-to-mobile substitution (FMS), increased competition and the removal of second lines due to broadband growth. However, cheaper line rental is resulting in fewer cord cuts and limited churn away from the incumbent to alternative providers. In addition, organic growth in some markets is offsetting decline.

Average PSTN revenues however fell more sharply, by 5% in 2006, due to price drops, competition and falling volumes attributable to FMS and VoIP. Single-digit PSTN revenue decline is expected going forward.

To stem the tide, operators are turning to subscription-based pricing and bundling.

Other key findings of the 'Regional Overview: Asia Pacific' report include:

  • Average broadband ARPU declined 5% in 2006.
  • Average mobile connection growth in 2006 in the markets surveyed slowed to 5%, half the 2005 rate.
  • Average mobile revenue in 2006 grew 7%.
  • After a considerable squeeze in 2005, margins in 2006 are fairly flat.