Asian Fiber to the Home Usage to Top 40 Million Households by 2010
March 22, 2006 (Dallas, Texas) - New research from The Diffusion Group predicts that the number of Asian FTTH users will grow eightfold in the next five years, from five million in 2005 to more than 40 million in 2010. According to TDG's new report, The FTTH Market in Asia: Analysis & Forecasts, by 2010 FTTH will account for more than 25% of all Asian residential broadband subscriptions.
"A number of factors have come together to help make FTTH more compelling for Asian operators and government officials," says Frank Marum, senior analyst with The Diffusion Group and co-author of the report.
The first factor is the demand for more powerful Internet connections among Asian consumers - simply stated, Asians are the most bandwidth-hungry consumers in the world. Young urban professionals, in particular, have come to view residential fiber connectivity as a status symbol.
The second factor is urban population density. The most affluent and Internet-dependent Asians continue to congregate in dense urban areas comprised of apartments or other multi-dwelling units. This user density makes FTTH deployment more economical and thus more attractive to operators - an aspect which changes the entire business proposition.
A third factor driving the interest of Asian operators in FTTH is the lack of network headroom. "Yes, this may sound crazy to European or North American operators offering 1-10 Mbps," says Marum. "However, many Asian operators are concerned that emerging usage models will require between 60-80 Mbps of consistent throughput. When you start to pipe a wide variety of bandwidth-intensive, two-way services over a broadband connection, the head room of a 30 Mbps connection can vaporize quickly."
The FTTH Market in Asia: Analysis & Forecasts provides a detailed study of Asian's growing telecommunications market with particular focus on the current status of FTTH deployments and expected fiber deployments in China, India, Japan, South Korea, and other Asian nations. It also features an extensive business case analysis including OPEX and CAPEX projections; the market drivers and inhibitors for global FTTH growth; and an extensive case study of a 100,000 user greenfield FTTH deployment. The report also includes a regionally-specific 'tipping point' analysis that predicts when FTTH will achieve superior economics over other fixed-line broadband technologies and finally be more compelling in brownfield deployments.
The report is available at TDG’s website or by contacting the firm at 469.287.8050.
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