Broadband growth seen slowing, shifting to Asia

Asia will have nearly half of the world's broadband households by 2013, Parks Associates says

Nearly 650 million households will have broadband Internet service by 2013, but the growth rate of high-speed access will slow between now and then, research company Parks Associates predicted on Tuesday.

The number of broadband households worldwide should grow by 15 percent this year, and that growth rate will remain in double digits for the next couple of years, said Parks analyst Kurt Scherf. But by 2012, growth will slow to just 6 percent, Parks predicts.

Much of that expansion will be concentrated in less-developed parts of the world, especially the Asia-Pacific region, according to Scherf. China and India should be major drivers of growth, though there are still questions about how India's broadband build-out will progress, he said.

This trend will make Asia-Pacific a much bigger part of the global broadband audience, rising from 40 percent of the world's broadband households last year to more than 49 percent -- roughly half -- by 2013, he said. Meanwhile, North America was home to 19 percent of the world's broadband users last year but will have just 15 percent by 2013.

In developed regions such as Europe and North America, so many people already use broadband that there is a shrinking population of potential new customers. Additions will slow most in Europe, according to Scherf.

The U.S. government's stimulus package may buoy North American growth over the next two years, but it is still likely to fall from 8 percent this year to 6 percent in 2010, he said.

Growth in other areas, such as Latin America and Africa, is harder to predict, Scherf said. Wireless Internet access is likely to play a major role in less-developed regions where no wired infrastructure exists, he said.

This may have powerful implications for makers of Internet client devices and software, because broadband users who skip straight to wireless may never buy a traditional desktop or laptop PC, Scherf noted.

Asia's growing share of the broadband market could shift the center of the network equipment market and even of innovation, Scherf believes.

Vendors such as China's Huawei Technologies and ZTE will grow by building much of the infrastructure for China's planned broadband build-out, which will make them more competitive worldwide against Alcatel-Lucent, Nokia Siemens Networks and other Western manufacturers, he believes. Meanwhile, growing Asian demand may cause more broadband invention to emerge from that part of the world.

But broadband isn't standing still in developed markets, where service providers will be adding fewer new subscribers but more new services for existing customers.

Those include IPTV (Internet Protocol television), connections to more consumer electronics devices, and services that bridge wired and wireless networks, Scherf said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags broadbandAsia

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?