Broadband Adoption Rising In Asia

    January 4, 2008

Broadband access in the Asia-Pacific region has seen significant growth in the past decade, as operators have upgraded their networks in preparation of future demand for high bandwidth services according to a new study from ABI Research.

Broadband Adoption Rising In Asia

The study focuses on fiber to the home (FFTH) and finds that different markets within the region are currently in very different stages of broadband growth. " While broadband adoption is increasing within APAC, growth is not homogeneous across all countries in the region," says research analyst Serene Fong.

"For instance, Hong Kong is one of the early adopters of FTTH and has the largest FTTH household penetration, currently 21%. On the other hand, countries such as China and India are still struggling to encourage greater broadband usage." For now, most FFTH is still in the more developed countries within the region including Hong Kong, Japan and South Korea.

Broadband penetration in the Asia-Pacific region is still relatively low compared to the rest of the world. Fong says that, "Demand is largely determined by CPE and infrastructure costs. Consumers are also looking out for sufficiently rich multimedia content to justify their subscriptions. But the irony is that carriers are also waiting to ride on economies of scale in order to offer more attractive and affordable packages."

Fiber installation is a major investment that requires a strong business case and clear objectives to be justifiable. According Fong, "Uses of the Internet are multiplying at a rapid pace, including many bandwidth-hungry services. There are compelling trends leading us to believe that IPTV and related content applications will drive demand for FTTH."