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One-third of households worldwide are on fixed broadband

Jack Loo | Oct. 11, 2012
ABI Research says subscribers are shifting from DSL to fibre optic.

More than one-third of the world's total households will have a fixed broadband connection at the end of 2012, according to ABI Research.

This means that the worldwide fixed broadband market will have 618.7 million subscribers at the end of 2012, increasing 7.3 percent from 2011. ABI Research analysts say the growth comes from all the fixed broadband platforms: DSL, cable, and fibre-optic broadband.

In the second quarter, DSL broadband subscription grew 1.2 percent from the previous quarter, adding 4.3 million subscribers. However, the quarter-on-quarter (QoQ) growth rate was 1.5 percent in the first quarter. A slower QoQ growth rate indicates that DSL subscribers are shifting to other alternative platforms such as fibre optic.

"Development of next generation broadband networks is creating opportunities to upgrade customers to fibre optic. Fibre optics broadband market share is expected to increase to 13.2 percent by YE 2012 from 12 percent in 2011, while DSL market share will decline nearly one percent point from 64 percent in 2011," said Jake Saunders, vice president and practice director of core forecasting.

North America has the highest fixed broadband penetration around the world, with 72.4 percent of households using broadband services, while Western Europe is expected to catch up with North America.

Increasing penetration of connected devices, applications, and services over broadband access continue to drive adoption of high-speed broadband services.

"As broadband operators upgrade their networks, customers are snapping up the faster services. At the end of Q2 2012, more than 44 percent of total customers subscribed to a broadband service of 10 Mbps and above," noted Khin Sandi Lynn, research analyst, ABI Research.


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