Global broadband revenue to reach $251 bn in 2018

Despite the fact that globally, broadband ARPU has continued to decline across all broadband platforms over the past few years, finds ABI Research

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BANGALORE, INDIA: Global fixed broadband market including DSL, cable, and fiber-optic services generated $188 billion service revenue in 2012; a seven per cent increase from 2011. According to ABI Research’s broadband carrier Market Data, fixed broadband service revenue will grow to $251 billion by 2018.

In 2012, fiber-optic broadband service revenue had its strongest year-over-year growth of 24 per cent, while DSL and cable broadband grew two per cent and six per cent respectively. Fiber-optic broadband is expected to grow stronger than other platforms throughout the forecast period. In 2018, FTTH revenue should reach $81.6 billion, almost one-third of global broadband service revenue.

Globally, broadband ARPU has continued to decline across all broadband platforms over the past few years.

“The trend is expected to endure as the majority of operators are trying to offer lower prices to capture a larger market share. In some countries like Japan and South Korea, increasing competition from LTE services is expected to pressure fixed broadband operators to offer lower service pricing in the long-term,” noted Jake Saunders, VP and practice director of core forecasting.

Fixed broadband market in United States increased to $43 billion in 2012 from $41 billion in 2011. Fiber-optic broadband represents only seven per cent of total broadband revenue in United States. However, the country’s key FTTH operator, Verizon, experienced a 3.1 per cent increase in broadband revenue particularly due to higher adoption of its FTTH service, FiOS.

“As more consumers tend to get super-fast broadband which supports online video gaming and HD video services, FTTH adoption will continue to grow. ABI Research forecast that United States FTTH revenue will reach $4 billion at the end of 2013,” said Khin Sandi Lynn, research analyst.

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