Global Broadband Service Revenue to Reach $251 Billion in 2018 Despite Decline in ARPU, Says ABI Research

SINGAPORE--(BUSINESS WIRE)--Global fixed broadband market including DSL, cable, and fiber-optic services generated $188 billion service revenue in 2012; a 7% increase from 2011. According to ABI Research’s broadband carrier Market Data, fixed broadband service revenue will grow to $251 billion by 2018.

“As more consumers tend to get super-fast broadband which supports online video gaming and HD video services, FTTH adoption will continue to grow. ABI Research forecast that United States FTTH revenue will reach $4 billion at the end of 2013”

In 2012, fiber-optic broadband service revenue had its strongest year-over-year growth of 24%, while DSL and cable broadband grew 2% and 6% respectively. Fiber-optic broadband is expected to grow stronger than other platforms throughout the forecast period. In 2018, FTTH revenue should reach $81.6 billion, almost one-third of global broadband service revenue.

Globally, broadband ARPU has continued to decline across all broadband platforms over the past few years. “The trend is expected to endure as the majority of operators are trying to offer lower prices to capture a larger market share. In some countries like Japan and South Korea, increasing competition from LTE services is expected to pressure fixed broadband operators to offer lower service pricing in the long-term,” noted Jake Saunders, VP and practice director of core forecasting.

Fixed broadband market in United States increased to $43 billion in 2012 from $41 billion in 2011. Fiber-optic broadband represents only 7% of total broadband revenue in United States. However, the country’s key FTTH operator, Verizon, experienced a 3.1% increase in broadband revenue particularly due to higher adoption of its FTTH service, FiOS. “As more consumers tend to get super-fast broadband which supports online video gaming and HD video services, FTTH adoption will continue to grow. ABI Research forecast that United States FTTH revenue will reach $4 billion at the end of 2013,” said Khin Sandi Lynn, research analyst.

ABI Research’s quarterly updated “Broadband Carriers and Revenue” Market Data 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.

These findings are part of ABI Research’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.