Broadband set to overtake telephone revenues for telcos

APAC broadband revenues to double next year: Ovum

Consumer fixed broadband revenues are set to double in the Asia Pacific (APAC) region next year, according to analyst firm Ovum.

In a new report, Global Fixed Voice and Broadband Market Outlook: 2011–16, the analyst group says that APAC consumer voice connections declined by 23 per cent between 2011 and 2016, with Fibre-to-the Home (FTTH) and Fibre-to-the-Building (FTTB) connections being a key driver behind the decrease.

Ovum analyst, Charlie Davies, said 2012 will be a new milestone for broadband.

“Our research reveals the extent to which the fixed voice telecoms market is shrinking and just how important broadband has become to the telecoms industry,” Davies said in a statement.

Home broadband revenues are expected to be more than twice as large as home voice revenues, reaching $US68 billion and $US31 billion respectively.

“Next year, telcos will generate more consumer revenues from fixed broadband than from telephone lines for the first time,” Davies said.

“This will be driven by consumers continuing to shun their landline in favour of the mobile phone and the greater need for fixed broadband in the home to meet the demands of increasing video traffic, more applications and content in the cloud and more connected devices.”

Global FTTH/B broadband connections are set to total 226 million in 2016, with the APAC region claiming the majority of these at 180 million FTTH/B subcribers.

Ovum earlier this year said FTTH and FTTB were predicted to overtake DSL in the Asia-Pacific region by 2014.

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