BackAsia-Pacific broadband market size crosses $20.3 bn in first half of 2013
The broadband market in the region will continue to grow at a CAGR of 12.1% for the next five years, says IDC study
Premium
New Delhi: The size of the broadband market in Asia-Pacific excluding Japan crossed $20.3 billion in the first half of 2013, a growth of 5.2% over the first half of the previous year, said a study by International Data Corporation (IDC) on Friday.
The broadband market in the region will continue to grow at a compounded annual growth rate (CAGR) of 12.1% for the next five years, on the back of fast-growing demand for bandwidth and government-driven broadband projects, the study said.
Sherrie Huang, research manager of IDC’s Asia/Pacific Telecommunications Group, said, “The fast-growing bandwidth demand, driven by cloud, video and other bandwidth-hungry applications, have led to bandwidth upgrade taking place across Asia-Pacific countries, including India."
However, the report noted that demand for fixed broadband services declined in India due to high price pressure, fierce competition in the country’s telecom market and growth in mobile broadband with the rise of mobile-only households.
Sustaining revenue growth and profitability will be a challenge for fixed broadband providers in India, it said.
Nevertheless, the number of fixed broadband subscribers in India are projected to grow at a CAGR of 13.9% over the next five years, while revenue is projected to grow a CAGR of 7.8%.
“Leading operators have moved out of their comfort zone, developing their ICT (information and communications technology) service capabilities, bundling connectivity with value-added services, and discovering new revenue sources such as media and e-commerce. Some have partnered with OTTPs (over the top players, who provide applications that need high bandwidth) to enrich the portfolio and to drive innovation. Carriers will continue to change their business model as competition intensifies," said Huang.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
