Date: 02/12/2010

Market researcher says fiber broadband to generate revenue $30+ billion in 2011

Technology related market researcher ABI says global fixed broadband services revenue totaled $44.4 billion by the end of the third quarter of 2010, a 10% increase over the same period in 2009.
ABI predict fiber optic broadband adoption has been growing fast in 2010 and is forecasted to generate revenue of more than $30 billion during 2011. Fiber optic broadband can provide speeds high enough to offer consumers advanced services such as IPTV, video on demand (VOD), and other interactive applications. In order to meet these services' speed requirements, operators are accelerating fiber broadband rollouts.

The DSL rules the market with nearly 60% of fixed broadband service revenue comes from DSL platforms. However, says Jason Blackwell, digital home practice director at ABI Research, "Due to market saturation in most regions, DSL broadband's growth rate is expected to slow, especially in those Western European countries where DSL penetration is greater than 50%."

Customer demand is driving the push for faster and more reliable broadband access. For example the leading UK broadband operator, Virgin Media, has shown a 43% YoY increase in its high speed broadband service customer base. Broadband operators will need to continue innovating to improve broadband speed in order to maintain ARPU growth and reduce churn. "According to ABI Research's market data, fixed broadband service revenue should approach $186 billion by the end of 2011," says research associate Khin Sandi Lynn.