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APeJ fixed broadband market grows

Anuradha Shukla | April 29, 2014
Market reached a value of US$ 20.3 billion in the first half of 2013.

The Asia/Pacific excluding Japan (APeJ) fixed broadband market reached a value of US$ 20.3 billion in the first half of 2013.

A new report by International Data Corporation (IDC) shows that this market showed 5.2% Half on Half (HoH) growth during this period.

This growth is slow as APeJ has experienced more than 20% fixed broadband growth in previous years.

High growth in the region is attributed to the aggressive operator rollouts and the government-driven broadband projects in China, Australia, Singapore and Malaysia.

"Among the broadband services, Fiber-To-The Premise (FTTP) is driving the growth in APeJ region, and China contributes the biggest market share of both total fixed broadband and FTTP," said Sherrie Huang, research manager of IDC's Asia/Pacific Telecommunications Group. "China has become and will continue to be the biggest driver of Asia Pacific FTTP market growth."

Mobile only household

The mobile only household is increasing and the growth in mobile broadband has begun to decrease the demand for fixed broadband services.

However, the APeJ broadband market will continue to grow at 12.1% CAGR (Compounded Annual Growth Rate) for the next five years.

Encouraging growth is predicted for emerging markets including Indonesia, China, Thailand and Malaysia.

Consumers in Asia/Pacific countries are upgrading their bandwidth as bandwidth demand increases driven by cloud, video and other bandwidth-hungry applications.

"Leading operators have moved out of their comfort zone developing their ICT service capabilities, bundling connectivity with value added services, and discovering new revenue sources such as media and e-commerce," added Huang. "Some have partnered with OTTPs to enrich the portfolio and to drive innovation. Carriers will continue to adjust their business model and partner strategies as competition intensifies." 


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