One-Third of Households Worldwide Now Subscribe to Fixed Broadband Services, Says ABI Research

SINGAPORE--(BUSINESS WIRE)--Worldwide fixed broadband market continues to grow across different regions to reach 618.7 million subscribers at the end of 2012, increasing 7.3% from 2011. In terms of penetration, more than one-third of world’s total households will have a fixed broadband connection at the end of 2012.

“As broadband operators upgrade their networks, customers are snapping up the faster services. At the end of 2Q-2012, more than 44% of total customers subscribe to a broadband service of 10 Mbps and above”

The growth has come from all the fixed broadband platforms: DSL, cable, and fiber-optic broadband. In 2Q-2012, DSL broadband subscription grew 1.2% from 1Q-2012, adding 4.3 million subscribers. The Quarter-on-Quarter (QoQ) growth rate was 1.5% in the first quarter. A slower QoQ growth rate indicates that DSL subscribers are shifting to other alternative platforms such as fiber optic. “Development of next generation broadband networks is creating opportunities to upgrade customers to fiber optic. Fiber optics broadband market-share is expected to increase to 13.2% by YE-2012 from 12% in 2011, while DSL market-share will decline nearly 1% point from 64% 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% of households using broadband services. By the end of second quarter, Western Europe had almost caught up with the penetration rate of North America. The region added 1.2 million subscribers in 2Q-2012 resulting in a penetration rate of 72%. Subscriber base of key broadband operators in Western Europe such as British Telecom, Deutsche Telecom, and Iliad Telecom increased more than 1% from the first quarter. The majority of the North American operators grew about 0.8% from the first quarter except Cox Communications which grew approximately 3%.

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 2Q-2012, more than 44% of total customers subscribe to a broadband service of 10 Mbps and above,” noted Khin Sandi Lynn, research analyst.

ABI Research’s “Broadband Subscriber” market data, which is updated quarterly, profiles ARPU and service revenue by operator, country, and technology. Detailed market trends and market forecast information for key regions and countries around the globe are provided. The market data forms part of the company’s Broadband (http://www.abiresearch.com/research/service/broadband/) Database.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70 research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.