Fixed Broadband Revenue Expected to Top $184 Billion by the End of 2010, Says ABI Research

SINGAPORE--(BUSINESS WIRE)-- Global fixed broadband service revenue totaled $170 billion by the end of 2009, with YoY growth of 14%. DSL remains the largest broadband revenue generator with 62% of total global broadband service revenue.

Broadband fiber service revenue is the fastest-growing among the various platforms, primarily stimulated by subscriber adoption. The Asia-Pacific region is spearheading fiber installation, with 80% of the global broadband fiber market. In order to satisfy the need for high speed advanced services such as IPTV, operators in Western European countries are accelerating the rollout of broadband fiber. Recently, British Telecom set a target to provide fiber broadband to 40% of homes by 2012.

“There is significant potential for broadband fiber service revenue growth,” comments Jason Blackwell, digital home practice director at ABI Research. “In Italy, the three operators, Fastweb, Vodafone and Wind are planning to launch a shared fiber optic network to deliver FTTH to end users. ABI Research expects that fiber broadband service revenue will approach $25 billion in 2010.”

In countries with low penetration fixed broadband pricing can be higher and data speeds lower than in countries with higher broadband penetration. In countries such as Thailand or India, broadband connection with 4 Mbps download speed costs around $19 per month while a 20 Mbps fixed broadband connection costs around $24 in France. The high price is a barrier to greater broadband adoption in developing countries. Governments need to encourage competition and widen the technology options in order to lower the prices in these countries.

In developed markets, broadband operators are resorting to innovation to attract and retain customers. “Triple play bundles and HDTV are options being touted to customers. These services also help operators to boost ARPU. According to our market data, fixed broadband service revenue should top $184 billion by the end of 2010,” says ABI Research associate Khin Sandi Lynn.

ABI Research’s market data product “Broadband Operational and Financial Benchmarks Market Data” (http://www.abiresearch.com/research/1002961) which is updated quarterly, profiles ARPU and service revenue by operator, by country, and by technology. Detailed market trends and market forecast information for key regions and countries around the globe are provided where available.

The database is included in two of the company’s Research Services: Connected Home (http://www.abiresearch.com/products/service/Connected_Home_Devices_Research_Service), and Digital Media (http://www.abiresearch.com/products/service/Digital_Media_Research_Service).

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 28 research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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KEYWORDS:   Europe  Asia Pacific  Singapore

INDUSTRY KEYWORDS:   Technology  Consumer Electronics  Hardware  Internet  Networks  Software  Telecommunications  Satellite  Mobile/Wireless

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