Feeds

Home broadband market to hit $88bn by 2007

Music downloads fuel uptake

  • alert
  • submit to reddit

Internet Security Threat Report 2014

The residential market for broadband access will be worth around $88 billion by 2007, an estimated sevenfold increase in revenue over the next five years.

Industry consultancy ARC Group estimates that by 2007 almost 300 million business and residential premises worldwide will be wired up to broadband. By 2007, broadband will become the norm rather than the exception, ARC forecasts.

DSL will account for almost a third of all connections closely followed by cable. Satellite, fibre and fixed wireless will all represent a smaller proportion of the market "due to cost and availability factors", according to ARC.

Tim Page, author of ARC Group's strategic report Broadband Access 2002, noted that some operators in the States have recently gone bust, but the long-term future is bright, and that the market will be highly competitive, he says.

Speaking particularly about the UK, Page said: ""A fierce price war will be inevitable, fuelled by BT's reduction in DSL wholesale price. This will result in a more competitive consumer proposition".

"There are positive signs that the broadband industry is starting to take off with the launch of self install DSL and competitive 'triple-play' packages of voice, data and digital television."

More generally "broadband access will be driven by a competitive price war with operators trying to encourage narrowband users to migrate to broadband," he added.

Although the residential market has the largest number of broadband installations (fuelled in large part by MP3 downloads and streaming media), the business market will be the largest in terms of revenue and bandwidth usage.

This is because one broadband business connection may be used by several offices, in the case of multi-tenanted units.

In 2007 there will be over 30 million broadband business premises, with Western Europe accounting for a third of these. In North America, the rise in broadband business will slow down to saturation of the market, but this will the offset by strong growth in Asia Pacific, according to ARC's estimates. ®

Related stories

PlusNet and Nildram update DSL prices
UK Govt earmarks £30m spending on broadband
Deregulation has done nothing for Broadband Britain - Cisco
AOL plans cable acquisitions as broadband boss goes
BTopenworld rocked by dotmusic buy
NTL to offer 1MB broadband service
AOL UK and Freeserve welcome BT's DSL slash
BT slashes wholesale DSL costs
Liberty does German u-turn
BT Openworld announces broadband price cut

Beginner's guide to SSL certificates

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Ofcom tackles complaint over Premier League footie TV rights
Virgin Media: UK fans pay the most for the fewest matches
FCC: Gonna need y'all to cough up $1.5bn to put broadband in schools
Kids need more fiber, says Wheeler, and you'll pay for it
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.