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

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is