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Asia Pacific Fixed Communications Outlook - Internet Access Services Markets
Frost & Sullivan, Sep 2006
This Frost & Sullivan research service provides market size of Internet Access Services Market in the Asia Pacific. Market forecasts for seven years are provided for each individual markets. Overall market has been segmented by end users. Broadband adoption is tracked and forecasted for both consumer and enterprise segment. This research service also monitors revenue and ARPU trends in different markets. This research service thoroughly examines the following technologies: x digital subscriber line (xDSL), cable television (CATV), fiber-to-the-x (FTTx), and other (satellite, wireless, Ethernet, and ISDN) broadband access services and their trend.
The Frost & Sullivan research service entitled Asia Pacific Fixed Communications Outlook - Internet Access Services Market, 2006 provides key insights on the market size of Internet Access Services Market in Asia Pacific. This study offers service providers an understanding of the key growth patterns to evaluate addressable market opportunities. In this research service, Frost & Sullivan's expert analysts thoroughly examine the segments: x digital subscriber line (xDSL), cable television (CATV), fiber-to-the-x (FTTx), and other (satellite, wireless, Ethernet, and ISDN) broadband access services and their trends.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By End User:
- Consumer
- Enterprise
By Technology:
- xDSL broadband access services
- CATV broadband access services
- FTTx broadband access services
- Other broadband access services (satellite, wireless, Ethernet, and ISDN)
Market Overview
Rapid Migration to Broadband Services Boosts Revenue growth
The Asia Pacific Internet access services market is seeing aggressive revenue growth, largely due to the on-going migration to broadband service in the region. The overall Internet subscriber base grew by 5.9 percent to reach 161.8 million by end of 2005, and Internet revenues are expected to further grow due to the user migration to broadband services and the strong growth in first-time user markets (particularly in India, Indonesia, and the Philippines). Broadband is clearly where the growth potential for service providers lies, particularly as the service has overtaken the narrowband subscriber base, accounting for 53.3 percent of total Internet subscriber base in 2005. The subscriber base is expected to further grow during 2005 to 2018 to account for more than 80 percent of total Internet subscribers in the region.
Despite this, broadband home penetration in Asia Pacific was still a mere 9.8 percent in 2005. Low PC literacy and Internet usage, along with affordability issues and the slow unbundling of the local loop and poor broadband infrastructure lay-out, have stalled growth to a large extent beyond the Tier 1 market, notes the analyst of this research service. Nevertheless, the household penetration level is expected to reach 20.8 percent by the end of 2012, and the southeast Asian, Chinese, and Indian broadband access services markets are expected to have the highest growth potential in the region.
Regulators and Government initiatives boost adoption
Regulators are playing pivotal role in driving the mass adoption of broadband across the Asia Pacific. As an example, positive broadband policies such as the rapid deployment of broadband infrastructure, the initiation of affordable broadband access fees and the roll-out of next-generation technologies have helped to make the South Korean broadband and wireless communications world class. Similar broadband plans in the region include Malaysia’s aspiration to boost broadband subscriber penetration to 5 percent in 2006, and 10 percent in 2008. India’s plans to target 20 million broadband subscriber base by 2010, growing from 0.9 million in 2005.
XDSL Technology Remains Dominant
Among the technologies, x digital subscriber line (xDSL) continues to be the predominant access technology, accounting for 67.2 percent of the total subscriber base in 2005. The popularity of xDSL can largely be attributed to the high penetration of phone lines (which was 67.2 percent in 2005), the relatively small number of existing cable operators in the region (compared to the U.S. and European market); and its affordable service fees given the economies of scale achieved so far. Among the others, fiber-to-the-x (FTTx) is also gaining popularity in the region, particularly in major cities and high-density areas such as Japan, South Korea, Hong Kong, and Taiwan. However, its development (in terms of subscriber base) is likely to be much less in comparison to xDSL in the medium term due to high investment cost it demands.
Overall, much of the subscriber growth in the Asia Pacific Internet access services market is expected from the regions developing broadband markets. Having said that, it is the developed markets that are expected to contribute largely to the overall revenue growth. While access average revenue per user (ARPU) will continue to decline, the total ARPU, which includes ARPU from content and applications, is envisaged to grow continuously. says the analyst. Keeping this trend in mind, it is vital for service providers to redefine their business models, which should be more aligned to tap into this new growth area.
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