Fixed broadband revenue to cross $182 bn in 2011

SINGAPORE: Despite growing uncertainty of the global economic situation, fixed broadband subscriber numbers are continuing to grow steadily, finds ABI Research.

According to Jason Blackwell, practice director, digital home, “Worldwide fixed broadband service revenue will generate more than $182 billion at the end of 2011.”

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The fixed broadband sector includes broadband access over DSL, cable, and fiber optic platforms.

Net broadband subscriber additions are increasing rapidly in the emerging markets. Specifically, China and India in the Asia-Pacific, Russia in Eastern Europe, and Brazil in Latin America are the emerging markets with very high potential for growth. These countries will be the major contributors to fixed broadband subscriber growth over the next five years, adds the analyst firm in its latest report, “Broadband Carrier Market Data”.  

However, net subscriber additions are declining slowly in some of the mature markets such as Denmark, Finland, and the Netherlands. “The fixed broadband market has reached near saturation in these markets. Moreover, the availability of mobile broadband services is also causing a slight decline in the growth of fixed broadband net addition,” comments Khin Sandi Lynn, research analyst, ABI Research.

Over the past few years, increasing competition in the market has pressured broadband operators to lower subscription prices. Affordable pricing plans attract more new customers and help broadband operators in rapid market expansion. However, it also results in a declining ARPU. Broadband operators are trying to provide higher speed access to maintain ARPU growth.

Subscriber migration to higher speed access options including FTTH, VDSL, and DOCSIS 3.0 technologies will help operators to raise broadband ARPU.

Expansion of fixed broadband infrastructure is underway in both mature and developing markets in terms of coverage area and access speed. Overall, fixed broadband penetration across each region of the world is expected to grow over the next few years.

ABI Research expects that revenue from worldwide fixed broadband will surpass $216 billion in 2016.