2008 Global Broadband Market - Demand for Faster Networks

Publication Overview

This annual report offers a wealth of information on the worldwide development of the broadband sector. Information at a regional level is also provided for the Americas, Europe, Middle East, Africa and Asia Pacific. The report includes analyses, statistics, forecasts and trends. It provides a comprehensive insight into the progress of broadband and examines the key issues and opportunities.

 

Subjects covered include:

  • High level analyses of the broadband market and its importance as essential infrastructure;
  • Broadband statistics including current and historical subscribers, regional subscribers and penetration;
  • Average broadband costs and speeds;
  • Internet usage and penetration statistics;
  • Broadband statistics by country;
  • Analysis of broadband trends and infrastructure;
  • Cable modem infrastructure including statistics;
  • DSL infrastructure including statistics;
  • FTTx infrastructure including statistics;
  • BPL infrastructure including statistics;
  • Satellite broadband infrastructure including statistics;
  • Regional information including statistics.

 

Researchers: Paul Budde, Lawrence Baker, Lucia Bibolini, Peter Evans, Phil Harpur, Kay Harris, Lisa Hulme-Jones, Paul Kwon, Henry Lancaster, Peter Lange, Kylie Wansink.

Current publication date: April 2008 (8th Edition)

Next publication date: April 2009

 

Executive Summary

The primary driver behind users upgrading to broadband is simple – users want fast Internet connections. And as the popularity of Web 2.0 applications continues to grow, this demand will in turn continue to build. The opportunities high-speed services present are becoming apparent and Internet users are increasingly tiring of the problems and slow speeds associated with dial-up services. In 2008 broadband subscribers now account for roughly 30% of all worldwide Internet subscribers. For more information, see chapter 1.1, page 1.

Broadband and high-speed wireless penetrations will continue to increase, as will the growth of new applications that could exploit these higher speeds. Internet access is just one of many services that will be delivered over broadband infrastructure. Far more importantly, other services that depend on high quality broadband infrastructure include e-health, e-education, e-business, digital media, e-government, smart utility meter reading, etc. In countries where the national telco is lagging behind, local governments have no other choice than to take a leadership role - just as they have done with similar infrastructure over the last 100 years. For more information, see chapter 1.2, page12.

Broadband is clearly established as one of the fastest growing new technologies in history. While DSL is the most effective and economical route to global broadband deployment, the emphasis of the next phase of broadband is on increasing speeds which via ADSL2+ and VDSL is leading to FttH. For more information, see chapter 2.1, page 17.

Globally the installed base and market share of FTTx technologies is continuing to increase and there are now over 35 million subscribers worldwide. FTTx captures almost 11% of the market share of broadband technologies – although DSL is still easily the leader with around 66%. In 2008 Japan still leads the world in terms of FttH connections and the USA and South Korea continue to rapidly roll out. Europe still lagged behind Asia and the USA in 2007 but this gap is expected to close sharply in 2008. For more information, see chapter 4.3, page 76.

Satellite broadband first turned a corner around 2005 and today there is further evidence of growing success in this sector. Services from WildBlue and Hughes now reach thousands of customers in North America. ViaSat and Eutelsat are also expected to launch Ka-band satellite services across Europe and North America; significantly increasing the potential of satellite broadband in these markets. For more information, see chapter 4.5, page 97.

The market for BPL also remains positive, despite the several obstacles that continue to hinder the industry. A solid growth is expected for this sector in 2008. For several years the lack of an international standard has held the industry back, but there is progress in this area - in late 2007 a joint IEEE standards proposal was submitted by the HomePlug Powerline Alliance and Panasonic. IPTV over BPL is becoming a competitive technology for carrying HDTV signals into the home and BPL also offers benefits in home networking due to its ubiquity.

However, with mainly low-risk-taking utilities involved in this market, they have become unwilling to take-on the telcos in the broadband market. Instead they are more interested in using BPL for smart grid applications and Demand Side Management services, such as switching on and switching off facilities for appliances, meter-reading, etc. This demand is expected to increase as pressure to reduce energy consumption intensifies worldwide. For more information, see chapter 4.4, page 84.

This report provides an insight and analysis into the trends and developments taking place primarily in the fixed broadband sector. Wireless broadband is covered in detail in a separate annual publication. The report comprises a global overview of the progress of broadband technologies and subscribers, including DSL and FttH. The report includes detailed information on broadband infrastructure including cable modems, xDSL, FTTx, BPL and satellite broadband. Developments and statistics at a regional level are also provided for North America, Latin America, Europe, Middle East, Africa and Asia Pacific. The report contains BuddeComm’s analyses of the current and future broadband sector.

Key highlights:

  • In early 2008 there were over 350 million broadband subscribers worldwide.

Worldwide broadband subscribers – 2004 - 2008

Year

Approximate broadband subscribers (million)

Percentage change

2004

162

53%

2005

221

36%

2006

286

29%

2007

344

20%

2008 (e)

410

19%

(Source: BuddeComm - Global - Broadband - Statistical Overview)

  • During 2008 to 2013, worldwide fixed broadband services revenues are expected to grow by between 8-13%.
  • Worldwide satellite broadband service revenues are also expected to grow on average around 8% in the coming years.
  • DSL subscribers are expected to grow at a CAGR of approximately 13% through to 2011. For more information, see chapter 4.2, page 68.
  • Broadband is seen as being vital to both the economy and the community. BuddeComm estimates that it will add over $100 billon to the Australian economy. For more information see chapter 5.6.1, page 136.
  • In New Zealand Telecom’s cabinetisation plan will see the incumbent replace 2,000 local exchanges when they roll out their FttN network. This could potentially make ULL investments in DSLAMs obsolete. For more information, see chapter 5.6.2, page 142.
  • As with the past decade, the coming decade will witness the Internet, underpinned by broadband, having dramatic impacts on the lives of North Americans. For more information, see chapter 5.1, page 106.
  • Eight new international submarine fibre projects are planned around Africa and expected to go online in 2008 and 2009.
  • 3G mobile networks in South Africa are being upgraded to 7.2Mb/s and surpassing ADSL subscriber numbers. For more information, see chapter 5.4.1, page 123.
  • The broadband market in Latin America has been growing steadily in most countries, and there is considerable room for expansion. Although the situation varies considerably from country to country, the region as a whole is a fertile ground for broadband investment. For more information, see chapter 5.2, page 107.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

  • 1. Global Broadband Market 2008
    • 1.1 Broadband market analysis
      • 1.1.1 Broadband fastest growing technology
      • 1.1.2 Broadband trends 2008
      • 1.1.3 Wireless broadband
      • 1.1.4 Telcos must deliver large-scale broadband services
      • 1.1.5 Market analysis
      • 1.1.6 Users in the driver’s seat
    • 1.2 High level overview
      • 1.2.1 Broadband doesn’t equal high-speed Internet
      • 1.2.2 The many aspects of broadband infrastructure
      • 1.2.3 Cities to take charge
      • 1.2.4 National or local infrastructure
      • 1.2.5 The pointless technology debates
  • 2. Broadband Statistics And Forecasts
    • 2.1 Broadband statistical overview
      • 2.1.1 2007 - 2008 broadband statistics and forecasts
      • 2.1.2 Broadband subscribers by access technology
      • 2.1.3 Broadband pricing
      • 2.1.4 Broadband speeds
      • 2.1.5 Broadband revenues
    • 2.2 Internet statistics overview
      • 2.2.1 Internet usage and penetration statistics
      • 2.2.2 Internet traffic and bandwidth overview
      • 2.2.3 Language statistics
      • 2.2.4 Time spent online
    • 2.3 Broadband statistics by country
      • 2.3.1 Internet users
      • 2.3.2 Internet user penetration
      • 2.3.3 Broadband subscribers
      • 2.3.4 Broadband subscriber penetration
      • 2.3.5 Broadband technologies
  • 3. Infrastructure Analyses & Trends
    • 3.1 Broadband infrastructure trends and developments
      • 3.1.1 Introduction
      • 3.1.2 Boom and bust cycle in local access
      • 3.1.3 Electricity and broadband – a comparison
      • 3.1.4 The costs of infrastructure
      • 3.1.5 Network trends
      • 3.1.6 Voice over Broadband (VoBB)
      • 3.1.7 Brief regional overview 2007/2008
  • 4. Infrastructure Overview
    • 4.1 Cable modem infrastructure
      • 4.1.1 Introduction
      • 4.1.2 DOCSIS
      • 4.1.3 Regional cable overview
      • 4.1.4 Cable market statistics
    • 4.2 xDSL infrastructure
      • 4.2.1 Technical infrastructure
      • 4.2.2 The DSL market
      • 4.2.3 The VDSL market
      • 4.2.4 Competition in the local loop
    • 4.3 FTTx infrastructure
      • 4.3.1 Global overview
      • 4.3.2 Fttx market statistics
      • 4.3.3 Regulating fibre: a global issue
      • 4.3.4 FttH drivers
      • 4.3.5 FttH business models
    • 4.4 BPL infrastructure
      • 4.4.1 Introduction
      • 4.4.2 BPL market overview 2007/2008
      • 4.4.3 BPL forecasts
      • 4.4.4 BPL SWOT analysis
      • 4.4.5 Selecting the right business model
      • 4.4.6 Utilities as telcos
      • 4.4.7 Third broadband network into the home
      • 4.4.8 Full circle for utilities telecoms – Analysis
      • 4.4.9 Other developments
      • 4.4.10 Analysing telecoms and the electricity utilities
    • 4.5 Broadband satellite
      • 4.5.1 Introduction
      • 4.5.2 Market overview
      • 4.5.3 Mobile Satellite Services (MSS)
      • 4.5.4 Satellite broadband
      • 4.5.5 IPStar – a brief case study
      • 4.5.6 Geostationary, LEO, MEO and HEO satellites
      • 4.5.7 Direct Broadcasting Services (DBS)
      • 4.5.8 Co-ordination and regulation
  • 5. Regional Overviews
    • 5.1 North America
    • 5.2 Latin America
      • 5.2.1 Overview
      • 5.2.2 Cable modems
      • 5.2.3 Asynchronous Digital Subscriber Line (ADSL)
      • 5.2.4 Wireless broadband
      • 5.2.5 Broadband Powerline (BPL)
    • 5.3 Europe
      • 5.3.1 Western Europe
      • 5.3.2 Eastern Europe
    • 5.4 Africa/Middle East
      • 5.4.1 Africa
      • 5.4.2 Middle East
    • 5.5 Asia
      • 5.5.1 Overview
      • 5.5.2 Singapore
      • 5.5.3 India
      • 5.5.4 Malaysia
      • 5.5.5 Japan
      • 5.5.6 Hong Kong
      • 5.5.7 China
      • 5.5.8 South Korea
      • 5.5.9 Taiwan
    • 5.6 Pacific region
      • 5.6.1 Australia
      • 5.6.2 New Zealand
      • 5.6.3 South Pacific
  • 6. Glossary of Abbreviations
  • Table 1 – South Korea broadband Internet subscriber growth and penetration – 1998 - 2007
  • Table 2 – Take-up time to reach 10 million customers in mass market
  • Table 3 – Forecasting broadband costs over a 10-year period
  • Table 4 – Residential Broadband (BB) growth predictions – next ten years
  • Table 5 – Worldwide broadband subscribers – 2003 - 2008
  • Table 6 – Regional share of broadband subscribers including net additions – Q3 2007
  • Table 7 – Broadband access among Internet households – selected countries – 2002 - 2008
  • Table 8 – Broadband penetration – top 5 OECD countries – mid-2007
  • Table 9 – Select OECD countries’ broadband penetration – 2001; 2006 - 2007
  • Table 10 – Broadband subscribers – top 10 OECD countries – mid-2007
  • Table 11 – Worldwide broadband market share by access technology – 2006 - 2007
  • Table 12 – OECD broadband market share by access technology – mid-2007
  • Table 13 – OECD countries with cheapest broadband price per Mb/s – June 2007
  • Table 14 – Average broadband cost for 100kb/s – selected countries worldwide – 2006
  • Table 15 – Fastest average broadband download speeds – top 4 OECD countries – mid-2007
  • Table 16 – Average broadband speeds – 36 selected countries – 2007
  • Table 17 – Number of countries with broadband speeds of more than 256kb/s – 2002 - 2007
  • Table 18 – Average broadband speeds by technology – OECD – October 2007
  • Table 19 – Why the average home will soon require 50Mb/s
  • Table 20 – Total fixed broadband revenues worldwide – 2006; 2010
  • Table 21 – Telecommunications services revenue share by product – 2010; 2015
  • Table 22 – Worldwide Internet users – 1990 - 2007
  • Table 23 – Worldwide Internet users and penetration by region – 2007
  • Table 24 – Top ten ranking by country for Internet users – June 2007
  • Table 25 – Top 15 countries by Internet usage and growth – 2006 - 2007
  • Table 26 – Regional Internet users, growth and penetration – March 2006
  • Table 27 – Households with access to a home computer and the Internet – selected countries – 2005
  • Table 28 – Internet users by top languages – 2002; 2005; 2007
  • Table 29 – Top online activities – 2005; 2007
  • Table 30 – Country comparison of monthly at-home Internet usage – 2006 - 2007
  • Table 31 – Top 5 countries – time spent online – March 2006
  • Table 32 – Top 28 Internet user countries – 2002 - 2006
  • Table 33 – Internet users in Africa by country – 2002 - 2006
  • Table 34 – Internet users in the Americas by country – 2002 - 2006
  • Table 35 – Internet users in Asia by country – 2002 - 2006
  • Table 36 – Internet users in Europe by country – 2002 - 2006
  • Table 37 – Internet users in the Middle East by country – 2002 - 2006
  • Table 38 – Internet users in Oceania by country – 2002 - 2006
  • Table 39 – Top 28 countries for Internet user penetration – 2002 - 2006
  • Table 40 – Internet user penetration in Africa by country – 2002 - 2006
  • Table 41 – Internet user penetration in the Americas by country – 2002 - 2006
  • Table 42 – Internet user penetration in Asia by country – 2002 - 2006
  • Table 43 – Internet user penetration in Europe by country – 2002 - 2006
  • Table 44 – Internet user penetration in the Middle East by country – 2002 - 2006
  • Table 45 – Internet user penetration in Oceania by country – 2002 - 2006
  • Table 46 – Top 33 broadband subscriber countries – 2002 - 2006
  • Table 47 – Broadband subscribers in Africa by country – 2002 - 2006
  • Table 48 – Broadband subscribers in the Americas by country – 2002 - 2006
  • Table 49 – Broadband subscribers in Asia by country – 2002 - 2006
  • Table 50 – Broadband subscribers in Europe by country – 2002 - 2006
  • Table 51 – Broadband subscribers in the Middle East by country – 2002 - 2006
  • Table 52 – Broadband subscribers in Oceania by country – 2002 - 2006
  • Table 53 – Top 34 countries for broadband subscriber penetration – 2002 - 2006
  • Table 54 – Broadband subscriber penetration in Africa by country – 2004 - 2006
  • Table 55 – Broadband subscriber penetration in the Americas by country – 2002 - 2006
  • Table 56 – Broadband subscriber penetration in Asia by country – 2002 - 2006
  • Table 57 – Broadband subscriber penetration in Europe by country – 2002 - 2006
  • Table 58 – Broadband subscriber penetration in the Middle East by country – 2002 - 2006
  • Table 59 – Broadband subscriber penetration in Oceania by country – 2002 - 2006
  • Table 60 – Major broadband technologies in the Americas by country – 2006
  • Table 61 – Major broadband technologies in Asia by country – 2006
  • Table 62 – Major broadband technologies in Europe by country – 2006
  • Table 63 – Major broadband technologies in Oceania by country – 2006
  • Table 64 – Global telecoms capital expenditure – 2006; 2010; 2015
  • Table 65 – Worldwide VoBB subscribers – 2005 - 2008; 2011
  • Table 66 – Worldwide households connected to digital TV by delivery system – 2011
  • Table 67 – Triple play households in Europe – 2005; 2010; 2015
  • Table 68 – US cable industry infrastructure expenditures – 2000 - 2007
  • Table 69 – US cable VoIP subscribers and annual change – 2003 - 2007
  • Table 70 – Worldwide cable telephony subscribers – 2005 - 2006; 2009
  • Table 71 – Worldwide cable telephony services revenue – 2006 - 2007
  • Table 72 – Worldwide cable modem subscribers – 2003 - 2007
  • Table 73 – Worldwide cable subscriber market share versus other access technologies – 2006; 2007
  • Table 74 – Cable subscriber market share versus other broadband access technologies – OECD countries – 2006 - 2007
  • Table 75 – Cable TV households worldwide versus TV households – 2005 - 2007
  • Table 76 – Cable TV households – top 3 countries – 2006
  • Table 77 – DSL market share compared to other access technologies worldwide – 2006 - 2007
  • Table 78 – DSL market share versus access technologies – OECD – mid-2007
  • Table 79 – Worldwide DSL subscribers – 2000 - 2008; 2011
  • Table 80 – Top 10 countries by DSL subscribers – mid 2007
  • Table 81 – FttH connections – Europe, Japan, USA – early 2008
  • Table 82 – Worldwide Fttx share of broadband market – 2004; 2006 - 2007
  • Table 83 – Fttx market share by region – Q3 2007
  • Table 84 – Worldwide spending on fibre optic cables – 2006; 2010
  • Table 85 – US residential BPL subscribers – 2008 - 2009; 2011
  • Table 86 – BPL networking equipment unit sales worldwide – 2006 - 2007
  • Table 87 – Worldwide satellite revenue – 2005 - 2008
  • Table 88 – Number of satellites launched worldwide – 2006 - 2007
  • Table 89 – Commercial satellites launched – 1996 - 2007
  • Table 90 – Wholesale revenues for MSS operators with satellites in orbit – 2005 - 2007
  • Table 91 – US satellite broadband households – 2011
  • Table 92 – Satellite broadband market share versus other access technologies – 2006 - 2007
  • Table 93 – Broadband subscribers, annual change and penetration rates – 2001 - 2007
  • Table 94 – Broadband subscriber ratios by technology – 2001 - 2007
  • Table 95 – Broadband subscribers and penetration – major Latin American countries – 2006 - 2007
  • Table 96 – Broadband subscriber ratios by technology – major Latin American countries – 2007
  • Table 97 – Cable modem subscribers, annual change and penetration rates – 2001 - 2007
  • Table 98 – Cable modem lines and penetration – major Latin American countries – 2006 - 2007
  • Table 99 – DSL subscribers, annual change and penetration rates – 2001 - 2007
  • Table 100 – DSL subscribers and penetration – major Latin American countries – 2006 - 2007
  • Table 101 – Fibre penetration of homes passed, select European countries – 2007
  • Table 102 – Fibre homes passed, select Western European countries – 2007
  • Table 103 – IP traffic growth, Western and Central Eastern Europe – 2005 - 2011
  • Table 104 – European annual bandwidth growth – 2002 - 2008
  • Table 105 – Telefónica O2 Czech Republic ADSL subscribers – 2003 - 2007
  • Table 106 – Magyar Telekom and total ADSL subscribers – 2001 - 2007
  • Table 107 – TPSA ADSL subscribers – 2003 - 2007
  • Table 108 – Slovak Telekom ADSL subscribers and annual change – 2005 - 2006
  • Table 109 – Slovenia household ADSL penetration – 2002 - 2006
  • Table 110 – Fixed lines, Internet & ADSL subscribers in Morocco, penetration rates – 2004 - 2007
  • Table 111 – Telkom South Africa ADSL and other Internet subscribers – 2003 - 2007
  • Table 112 – Distribution of ADSL subscribers by speed, Morocco – 2005 - 2007
  • Table 113 – Broadband subscribers and annual change in leading Asian markets – 2006 - 2007
  • Table 114 – DSL market subscriber overview in Asia – September 2007
  • Table 115 – Singapore broadband subscribers – 1999 - 2008
  • Table 116 – India - broadband subscribers – 2001 - 2008
  • Table 117 – Malaysia broadband subscribers – 2002 - 2008
  • Table 118 – Japan – broadband subscribers – 2000 - 2007
  • Table 119 – Hong Kong broadband subscribers – 2000 - 2007
  • Table 120 – China broadband subscribers – 2000 - 2007
  • Table 121 – South Korea broadband Internet subscribers and penetration – 1998 - 2007
  • Table 122 – Taiwan broadband subscribers, penetration & proportion of Internet subscribers – 2000 - 2007
  • Table 123 – Australian broadband subscribers – total market – retail values – 2002 - 2008
  • Table 124 – Australian broadband subscribers – total market – annual growth – retail values – 2003 - 2008
  • Table 125 – Australian broadband subscribers – market shares – retail values – 2003 - 2008
  • Table 126 – Australia – ADSL2+ subscribers by provider – 2006 - 2007
  • Table 127 – Australia – number of ADSL2+-enabled DSLAMs by major provider – 2007
  • Table 128 – New Zealand broadband subscribers by major provider – wireless & fixed-line access – 2005 - 2007
  • Table 129 – Broadband subscribers in the South Pacific by island – 2003 - 2007
  • Table 130 – Broadband subscriber penetration in the South Pacific by island – 2003 - 2007
  • Exhibit 1 – Examples of Web 2.0 developments
  • Exhibit 2 – Key starting-points for local broadbanding
  • Exhibit 3 – Key broadbanding steps
  • Exhibit 4 – Residential Broadband (BB) growth predictions through to 2015
  • Exhibit 5 – Key telecommunications revenue trends – period to 2015
  • Exhibit 6 – Devices supported by types of broadband
  • Exhibit 7 – Properties of DSL versions
  • Exhibit 8 - VDSL technology
  • Exhibit 9 – Selected VDSL2 developments worldwide – 2008
  • Exhibit 10 – Residential Broadband (BB) growth predictions – next ten years
  • Exhibit 11 – Key BPL applications
  • Exhibit 12 – Major global fixed satellite service operators – 2008
  • Exhibit 13 – Satellite dish problems
  • Exhibit 14 – African countries with ADSL services – 2007
  • Exhibit 15 – African countries with WCDMA-based 3G mobile services – 2007
  • Exhibit 16 – South Pacific Islands – broadband availability by access type – 2007 - 2008

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Number of pages 170

Status Archived

Last updated 8 Apr 2008
Update History

Analyst: Stephen McNamara

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