Asia Pacific Region Leads in Adoption of FTTH/B-based Broadband Services

  • Pyramid Research
LONDON — Asia Pacific (APAC) is the leading region for adoption of FTTH/B-based broadband services with over 68 percent of global broadband lines, according to "FTTH/B Deployments in Asia Pacific: Keys to Enhancing Service Availability, Proposition and Uptake," a research report from Pyramid Research. The report analyzes last-mile technology adoption trends and network deployment strategies, investments, stakeholders and best practices in the Asia Pacific region.

The report also explores FTTx service positioning and pricing strategies as well as adoption and revenue trends across the region's diverse market environment, taking into consideration the impact of LTE availability on FTTx network investments. The report includes case studies of Australia's NBN and its wholesale partners, China Telecom, Korean incumbent KT and Telekom Malaysia.

Key Findings

  • Asia Pacific (APAC) is the leading region for adoption of FTTH/B-based broadband services with an estimated total of 117.4 million lines in 2014, or over 68 percent of global broadband lines. FTTH/B comprises 34 percent of the region's broadband accounts in 2014, and will account for more than half by 2018. The main driver of FTTH/B network expansion in the APAC region is governmental involvement, as a financial backer as well as a partner in the development of a robust ecosystem of market players, products and services as well as the creation of awareness for fiber-based services.

  • The report identified three approaches to network deployment in the region: service provider-led deployments, public-private partnerships and government-led deployments. The latter two models, resulting in open-access networks, will lead the next wave of growth in FTTH/B broadband lines in the region.

  • FTTH/B has seen highest penetration in developed markets, with Hong Kong and South Korea boasting the world's highest household penetration rates, but there are a bevy of fiber deployment projects underway in emerging markets in the region including China, India, Malaysia, Indonesia and Vietnam. China presents the largest deployment scale in the region, reaching 200 million homes by 2015.

  • Despite the disparity in overall fiber uptake in the region, operators have largely done well in selecting areas for network deployment, boasting take-rates of over 40 percent.

  • Growth opportunities are ripe in the enterprise market, particularly the SME market, for FTTx-based solutions including connectivity as well as cloud-based, hosted applications. While LTE poses a competitive threat for FTTx-based broadband access and has led to revised investment plans for FTTH/B networks, increased mobile data traffic presents a revenue opportunity: FTTx can be positioned as a backhaul solution for 3G/4G base stations (Fiber to the antenna [FTTA]) and Wi-Fi hotspots.

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