ABI: 5-year global broadband services revenue to hit $251B despite tough market

According to new market data from ABI Research.

The global fixed broadband market including DSL, cable, and fiber-optic services generated $188 billion service revenue in 2012 -- a 7% increase from 2011. And according to ABI Research’s broadband carrier market data, fixed broadband service revenue will grow to $251 billion by 2018.

The market data observes that, 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.

The research cautions that, globally, broadband ARPU [Average Revenue Per Unit] 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," adds Jake Saunders, ABI's VP and practice director of core forecasting. "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.”

On the bright side, the fixed broadband market in United States increased to $43 billion in 2012 from $41 billion in 2011. However, fiber-optic broadband represents only 7% of the total broadband revenue in United States. Despite this, the data shows that 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 forecasts that United States FTTH revenue will reach $4 billion at the end of 2013,” states Khin Sandi Lynn, research analyst with ABI.

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. The findings are part of ABI Research’s Broadband Database. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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