ABI Research: Fiber Leads Broadband Subscriber Growth

SINGAPORE - Fiber led the way in wireline broadband for 3Q10, with a net gain of 2.7 million subscribers. Total global fixed broadband subscribers increased by 1.4 percent from 456.5 million in the second quarter of 2010 to 463 million in the third quarter of 2010, according to ABI Research. “DSL broadband remains the dominant platform, although there is strong growth in fiber broadband subscriptions,” says digital home practice director Jason Blackwell.

The Asia-Pacific region now owns the lion’s share of the fiber broadband market, representing more than 80 percent of the global total, followed by North America. Except for a few countries such as Sweden, Italy and Norway, fiber broadband adoption in Western Europe lags behind Asia and North America. “In order to provide consumers with advanced services such as high-definition movies, video on demand and other interactive applications, Western European countries will need to improve existing broadband infrastructure to roll out fiber optics,” says research associate Khin Sandi Lynn.

In terms of broadband penetration, North America and Western Europe have the highest fixed broadband penetration. Currently, broadband penetration in Latin America is low compared to other regions of the world. Brazil is the largest broadband market in Latin America, with almost 20 percent broadband penetration. Brazil’s government has made plans to promote broadband access across the country by deploying a national broadband backbone and lowering prices, which have formed one of the barriers to broadband adoption in the country. Brazilian fixed broadband subscriber numbers are expected to reach 12.7 million by the end of 2011.

Broadband penetration is one of the essentials for economic development of a country, so many governments are planning to increase broadband penetration. ABI Research expects global fixed broadband subscriber numbers will exceed 491 million by the end of 2011.