Asia-Pacific Market Perspective / Vol. 9, Issue 1, Edition 1 - Market Research Reports

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Asia-Pacific Market Perspective / Vol. 9, Issue 1, Edition 1

Description:

Fiber Adoption’s Impact on DSL, Operator Market Share and Revenue in Asia-Pacific

EVENT SPOTLIGHT

Deployments of fiber access technologies for consumer broadband access began in 2000, when NTT in Japan, Fastweb in Italy and Bredbandsbolaget in Sweden launched their networks in Asia and Europe. Since then, Asia-Pacific markets have become a runaway success in terms of fiber adoption. The region will have an estimated total of 25m residential connections at year-end 2008, which represents 19% of the total residential broadband base and 78% of the total FTTx subscribers globally.

Japan and the Four Asian Tigers are clearly hooked on high-fiber broadband diets. FTTx subscriptions have already overtaken DSL in South Korea and Japan, and will do so in Hong Kong and Taiwan by 2012 and in Singapore the following year. Indeed, the number of DSL households has been falling in South Korea and Japan since 2006; the rest of the Tigers are expected to see declines in the 2009-2010 time frame. Is fiber a part of the solution to combat broadband commoditization or is it a part of the problem? In this Perspective, we take a hard look at the fiber adoption trends and whether Asian telcos are simply migrating their DSL customers to new, expensive fiber networks — effectively cannibalizing their own broadband base — or whether they have actually seen gains in market share and top-line revenue since fiber deployments.

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