Global Fixed Broadband Service Revenue to Exceed $210 Billion in 2014 Tweet

Despite the economic downturn, the global broadband market remained healthy in 2009. Since more people are buying laptops, notebooks and PCs, home networking is becoming essential. At the same time, the demand for high speed broadband is increasing with the popularity of services such as IPTV and online gaming. New market data from ABI Research shows that global broadband service revenue has continued increasing over the past few years regardless of the recessionary pressures.

According to ABI Research market data, fixed broadband service revenue totaled $164 billion in 2009, an increase from $145 billion in 2008. ABI Research practice director Jason Blackwell comments, “The increasing demand for broadband helps increase subscriber numbers as well as service revenue. Global fixed broadband service revenue is expected to exceed $210 billion in 2014.”

Among the broadband technologies, DSL still maintains the largest market share, followed by cable and fiber broadband. Service revenue for DSL broadband totaled nearly $100 billion in 2009. ABI Research expects DSL broadband service revenue to reach just over $103 billion in 2014 with a CAGR of 0.6% from 2009 to 2014.

Recently, many operators are improving DSL broadband by deploying VDSL, which is cheaper to deploy than fiber as carriers can use existing copper infrastructure. “The higher speed of VDSL broadband helps operators to provide more services such as video on demand and interactive gaming. That can help to generate more revenue for operators,” notes research associate Khin Sandi Lynn. “Some operators currently offering VDSL are Telus Canada, O2 Czech, OTE Greece and Tele2 Netherlands.”

Fiber broadband service revenue is increasing fast, with a forecast CAGR of 23.3% between 2009 and 2014. ABI Research forecasts service revenue for fiber broadband to reach $24.4 billion in 2010.

Labels: