Telecom Lead India: Speed matters a lot for fixed broadband customers globally.
Close to half of total fixed broadband customers during the second quarter 2012 has opted for 10 Mbps and above.
Increasing penetration of connected devices, applications, and services over broadband access continue to drive adoption of high-speed broadband services.
In India, telecom regulator TRAI is yet to show aggression towards ensuring broadband to India’s 15 million broadband users.
Recently, ABI Research said the fixed broadband business generated service revenue of $47.7 billion. The significant growth is despite a surge in mobile broadband adoption globally.
ABI Research noted that worldwide fixed broadband market reached 618.7 million subscribers at the end of 2012, increasing 7.3 percent from 2011. In terms of penetration, more than one-third of world’s total households will have a fixed broadband connection at the end of 2012.
Indian broadband sector does not figure in top 20 in global broadband list of countries with around 15 million users. In India, BSNL continues to lead Indian fixed broadband market with 63.7 percent share in July 2012. Top five ISPs in terms of market share based on subscriber base include: BSNL (9.36 million), Bharti Airtel (1.37 million), MTNL (1.08 million), You Broadband (0.66 million) and Hathway (0.37 million).
Globally, according to ABI Research, development of next generation broadband networks is creating opportunities to upgrade customers to fiber optic. Fiber optics broadband market-share is expected to increase to 13.2 percent by YE-2012 from 12 percent in 2011, while DSL market-share will decline nearly 1 percent point from 64 percent in 2011.
The global growth has come from all the fixed broadband platforms: DSL, cable, and fiber-optic broadband.
In 2Q-2012, DSL broadband subscription grew 1.2 percent from 1Q-2012, adding 4.3 million subscribers.
Fiber optics broadband market-share is expected to increase to 13.2 percent in 2012 from 12 percent in 2011, while DSL market-share will decline nearly 1 percent point from 64 percent in 2011.
72.4 percent of households use broadband services in North America.
By the end of second quarter, Western Europe had almost caught up with the penetration rate of North America. The region added 1.2 million subscribers in 2Q-2012 resulting in a penetration rate of 72 percent.
Subscriber base of key broadband operators in Western Europe such as British Telecom, Deutsche Telecom, and Iliad Telecom increased more than 1 percent from the first quarter.
The majority of the North American operators grew about 0.8 percent from the first quarter except Cox Communications which grew approximately 3 percent.
Meanwhile, household penetration of fixed broadband in China has reached 10.6 percent. China ranks 34th in the world in terms of household penetration and that there is still plenty of room for broadband growth in the country. The Chinese government’s national convergence plan is designed to accelerate broadband market growth, principally by raising the level of competition in the broadband market.
According to ITU, over the past five years, fixed broadband subscriptions have more than doubled to reach an estimated 591 million in early 2012, yet a huge divide remains between the developed and developing worlds. Fixed broadband penetration of 26 percent in industrialized countries contrasts dramatically with penetration of just 4.8 percent in developing nations. Affordability remains a major obstacle, particularly in Africa, where fixed broadband access costs on average three times monthly per capita income.
