Skip to main content

Demand for Advanced Apps Driving Fiber Investment

According to the latest market study by Point Topic, rapid digital subscriber line (DSL) internet access growth is expected in developing markets, while fiber is set to increase its share in mature markets as demand for high bandwidth applications continues to rise in the leading markets.

Point Topic's latest survey of broadband tariffs around the world reveals a continued decrease in the cost of a megabit. Broadband households today pay on average just half the amount they were paying in early 2008 for their bandwidth.

The findings from the leading broadband analyst firm show that the ongoing reduction to the price of bandwidth tariffs is due to increased competition as operators look to move into new markets for DSL and fiber.

"DSL prices in particular are being squeezed. Competition between operators and access technologies is driving the search for more markets and DSL is well placed to capture customers who don't need full speed 24/7 bandwidth," said Oliver Johnson, CEO of Point Topic.

Johnson added "Many users do not use their broadband for more than a couple of hours a day and when they do it's often for applications that use relatively little bandwidth. They care much less about the cost per megabit, where fibre has the edge, than about the upfront and monthly charges and DSL wins that battle hands down."

However, the next stage in broadband internet access delivery reveals itself in some of the more advanced markets.

"Fiber to the building is a popular way of providing broadband. An increasingly common model in many markets is for multi-tenant housing to get a fiber connection and the bandwidth is then delivered over a LAN to the individual units," said Johnson.

This solution is dependent on the local and national infrastructure and the spread of the population. Nations that lead broadband adoption and usage -- such as Japan, Korea and Singapore -- already have end-to-end fiber to the home. They're seeing significant technology substitution with DSL in particular being replaced by fiber and therefore the rapid adoption of advanced applications.

The result is that the drop in DSL prices is not worldwide, in Asia Pacific costs have increased over the last two years.

Subscriber behavior is changing. The increasing popularity of high bandwidth applications, particularly video, mean that low cost per megabit carries more weight than low subscription costs. Operators are seeking ways of fulfilling existing needs and scrambling to create new ones.

The developing broadband markets will continue to see rapid growth -- particularly in DSL subscriptions in 2011. However, the advent and spread of connected TV is going to be the real news in the mature markets.

Enabling consumers to watch streaming video on their TV sets will drive bandwidth demand up significantly and where fiber is available we'll see appreciable growth in its market share.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d