Skip to main content

Quest for the Next Wave of Broadband Growth

Where's the primary opportunity of new consumer demand for broadband services? According to the latest market study by Informa, global fixed-broadband subscription numbers will reach half a billion this year, driven by continued growth in the emerging markets.

Although the fixed-broadband markets of many developed countries are saturated, tens of millions of homes in China and India are still without broadband. These under-served markets are poised to drive yet another wave of broadband growth -- creating opportunities for service providers and equipment vendors.

"Overall the number of net new fixed-broadband subscriptions grew in 2009 to over 480 million, largely as a result of accelerating growth in emerging markets and we expect this number to reach 500 million this year. China, Russia, Mexico, India and Vietnam were among the countries that recorded the greatest leaps in fixed-broadband subscription numbers last year," said Rob Gallagher, Principal Analyst at Informa Telecoms & Media.

China extended its broadband subscriber lead over the U.S., and Russia overtook Italy to claim the number eight spot. India, Mexico, Turkey, the Ukraine and Vietnam look set to also grow strongly, provided that current trends continue.

Seven of the top 20 countries -- by fixed-broadband subscription count -- at the end of September 2009 could be classified as emerging markets. The number of net additions in each of these countries was up substantially year-on-year, while those of the world's largest developed markets were either flat or down.

"Given that about four out of five households do not have broadband in these markets, there is still much room for growth. We forecast that these under-served markets will contribute the bulk of the next 100 million subscriptions by 2014," concludes Gallagher.

All regions recorded increases in fixed-broadband household penetration of between three and five percentage points in the first half of 2009 -- except Africa, because of problems such as poor fixed-line infrastructure and very low income levels.

Many of the fastest-growing markets -- relative to their size -- were in the Middle East, despite the high levels of fixed-broadband household penetration.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....