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Asia-Pacific Broadband Market to Reach 171-Million Subscribers by Year End

Date: 7/28/2008 11:47:32 AM

Asia-Pacific countries will be home to some 171 million broadband subscribers by the end of this year, up 31.5% from 129.7 million at the end of 2007, according to a study released earlier this month by Frost & Sullivan.

Growth in the region will be driven by the increasing popularity of video-on-demand and video sharing websites, multi-player online gaming, and social networking services like Facebook. Many ISPs are aggressively pursuing the millions of new customers by bundling broadband service with voice, video, and wireless offerings at a discount.

“As fixed-line substitution and voice migration to mobile continues, broadband value-added services (VAS) become critical drivers for fixed-line service providers,” explained Frost & Sullivan analyst, Khoo Yong Lih, in a media statement. “Operators are as such aggressively promoting attractive bundled and discounted price plans, encouraging migration from narrowband, introducing local content and innovative services such as IPTV (Internet Protocol TV), as well as overall improving service levels and affordability.”

The Asia-Pacific broadband market (covering 13 economies, including Singapore, South Korea, Japan, China, Hong Kong, and Australia) is expected to grow at a compound annual rate of 19.9% through 2013, when it will encompass 321.8 million subscribers.

Overall broadband revenue, meanwhile, came in at US$28.1 billion last year, and is expected to grow at a rate of 7.1% through 2013, when it will reach $42 billion. Household broadband penetration rate, which stood at 15.2% at the end of last year, is expected to more than double to 33.7% by the end of 2013.

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