FTTx Broadband Service Revenue to Reach $30B in 2011

  • FTTH
SINGAPORE -Operators are accelerating fiber broadband rollouts to meet the demand for advanced services, says ABI Research, which expects fiber broadband services to generate revenue of more than $30 billion during 2011. Total fixed broadband service revenue should approach $186 billion by the end of 2011.

The global fixed broadband market has grown steadily throughout 2010 in terms of subscriber additions as well as service revenue, according to a new ABI Research report. Global fixed broadband services revenue totaled $44.4 billion by the end of the third quarter of 2010, a 10 percent increase over the same period in 2009.

DSL still commands the largest share of the fixed broadband market -- worldwide, nearly 60 percent of fixed broadband service revenue comes from DSL platforms. However, according to ABI Research analyst Jason Blackwell, DSL broadband’s growth rate is expected to slow because of market saturation in most regions, especially in Western European countries where DSL penetration is greater than 50 percent.

Customer demand is driving the push for faster and more reliable broadband access. For example the leading U.K. broadband operator, Virgin Media, has shown a 43 percent year-over-year increase in its high-speed broadband service customer base. ABI says that broadband operators must continue innovating to improve broadband speed in order to maintain ARPU growth and reduce churn.

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