Fixed-line broadband under threat in Asia-Pacific
FTTH and FTTB to surpass DSL
DSL may still have the lead in fixed-line broadband subscribers but that lead won't last. According to a report from the industry analyst firm Ovum, FTTH and FTTB will surpass DSL's market lead in the Asia Pacific region by 2014.
The study conducted by Ovum for the FTTH Council Asia- Pacific predicts that 129 million fixed line subscribers will be connected via fiber to the premises by 2014. Cable modems will also increase over the period pushing DSL to second place. In contrast to cable's growth, DSL will have no compound growth through 2014.
FTTP which means Fiber To The Premises is a type of fiber optic communication delivery in which an optical fiber is used to run data to the customer's premises. FTTH means fiber to the home while FTTB means fiber to the business. Optical fibers are better for internet connections because it doesn't limit the speed of a broadband connection.
According to Ovum's principal analyst and study co-author Julie Kuntsler South Korea, Japan, Hong Kong and Taiwan had more than 25% FTTH penetration by the end of 2010. China's FTTP subscribers are still low given the size of the market but add that China still has significant growth potential.
"Despite a very low household penetration of only 4%, China will take first place for FTTH/B subscriber base, which will exceed 74 million in 2014, representing almost 60% of the FTTB/H subscriber base in the 16 economies".
The top four countries will continue to rely on FTTH/B as government policies, broadband initiatives and population characteristics influence it. While the top four's FTTH/B growth slows down other countries will experience a rapid growth in this area. Those notable countries are Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
"Varying growth patterns across the different countries in Asia-Pacific are seen, reflecting the diversity of the region. For example, Australia's FTTx CAGR from 2010 to 2014 will be very high (180%) as they are starting from a low base and have plans for significant investment (National Broadband Network), while Japan's growth will be lower (9%) since its existing base is very high," Kunstler concluded.