FTTx the Fastest-Growing Fixed Broadband Technology

  • Broadband Competition
  • Broadband Penetration
  • FTTH
SINGAPORE - Global revenues from fixed broadband service totaled $170 billion by the end of 2009, with year-over-year growth of 14 percent, says a new study from research firm ABI Research. Although DSL remains the largest broadband revenue generator with 62 percent of the total, fiber is the fastest-growing platform - largely because subscribers are adopting it at faster rates.

Asia-Pacific remains the fiber leader, with 80 percent of the market, but Western Europe is now accelerating its fiber rollout. Recently, British Telecom set a target of providing fiber-based broadband to 40 percent of U.K. homes by 2012. (BT is using a combination of fiber to the curb and fiber to the home.)

“There is significant potential for broadband fiber service revenue growth,” comments Jason Blackwell, digital home practice director at ABI Research. “In Italy, the three operators Fastweb, Vodafone and Wind are planning to launch a shared fiber optic network to deliver FTTH to end users. ABI Research expects that fiber broadband service revenue will approach $25 billion in 2010.”

High prices are a barrier to greater broadband adoption in developing countries. For example, in Thailand or India, a broadband connection with 4 Mbps download speed costs around $19 per month, while in France, a 20 Mbps fixed broadband connection costs around $24.  ABI says that governments of developing countries need to encourage competition and widen the technology options in order to lower broadband prices and encourage adoption.

In developed markets, broadband operators are using innovation to attract and retain customers. “Triple-play bundles and HDTV are options being touted to customers. These services also help operators to boost ARPU. According to our market data, fixed broadband service revenue should top $184 billion by the end of 2010,” says ABI Research associate Khin Sandi Lynn.

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