Broadband to continue solid growth, firm says
By Colleen Taylor -- EDN, February 13, 2007
Broadband web connections are on the rise and showing no signs of slowing down, according to some analysts. The latest update to ABI Research's online broadband subscribers database forecasts that the total number of DSL and cable broadband users in the world will grow by an average of nine percent annually over the next five years to reach 480 million subscribers by 2012.
"The Asia-Pacific region offers a potentially huge market to tap into," broadband research analyst Serene Fong, of ABI Research's Asia bureau. "In terms of statistical benchmarking, the subscriber base in the Asia-Pacific region will grow substantially over the next five years, and is expected to outperform other areas. Much of the Asia-Pacific growth is expected to be fueled by the flourishing Chinese broadband market."
In line with what other market researchers have projected, ABI said broadband DSL will continue to be the fastest growing sector in the industry, as opposed to cable broadband, the firm said, since it is able to leverage existing telecommunications infrastructure.
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It's true the telcos have more widely installed infrastructure that at least in theory can give them a lead over the cable companies. The problem is they have already leveraged what they can from their existing infrastructure and picked the low hanging fruit close to their existing COs where DSL can be deployed.
Since DSL suffers from signal attenuation on any loops exceeding three miles in length, the telcos must now make substantial investments in upgrading their legacy, decades old copper cable plant in order to offer broadband services beyond the first few miles in order to fully serve their service areas. So far, the telcos have proven reluctant to do so as evidenced by recently released FCC data showing more than 20 percent of telco subscribers were unable to obtain DSL as of June 2006.
Fred Pilot - 2007-14-2 10:50:00 PST -
I find it interesting that you state DSL will be the fastest growing broadband initiative due to the realtionship with the local telco. It seems to me that cable companies that provide phone service as well as video services are the ones that grow the quickest. The fact remains cable also offers consumers a larger pipe than DSL
Thom Gould - 2007-14-2 09:40:00 PST
