Broadband segment defying odds during recession: iSuppli

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The year 2009 is likely to see an increase the number of broadband subscribers reaching the figure of 64.2 mn, up 5.2% from 60.99 mn in 2008, according to a recent iSuppli report. Worldwide broadband equipment revenue will rise to $13.2 bn in 2009, up 5.8% from $12.5 in 2008, predicts the report.

The iSuppli report also compares the dismal situation of teleom where ARPU's are falling, voice revenues are experiencing a steep decline to the broadband subscribers which are continuing to rise driving increased data revenue. The fact that while access line revenue has eroded at an astonishing Compound Annual Growth Rate (CAGR) rate of 10% during the last three years, data revenue rose by 6.6% during the same period substantiates the uprise in the increase of the broadband subscribers.

The rise of the broadband can also be attributed to the stiff competition between cable TV operators and telecos. Lee Ratliff, senior analyst at iSuppli comments, “Multiple Service Operators (MSOs), such as cable television providers, are competing intensely with telcos to attract data subscribers by offering complete suites of data, voice and video entertainment services.” He adds, “The MSOs are adding voice subscribers at a rapid pace, while telcos are offering IPTV services.” Such initiatives are boosting global broadband foray into every nook and corner of the market.

Another vital factor that is adding a positive twist to the tale of growing broadband users are the new applications like IPTV, VoIP, peer-to-peer file sharing, online gaming and streaming audio unlike before when net surfing was the only driving asset for the net-users. A futuristic look, as can be guessed by the present situation says that 50 Mbps to 100 Mbps, that is, wideband data rates, will be standard in the coming times. The report also believes that the race for wideband is expected to continue for several years as both telephone companies and MSOs morph into multimedia services providers - with the only real difference between them being their access plants.

The global spending on broadband equipment is estimated to have reached $3.2 bn for the third quarter of this year, up from 6.3% from the same period of last year. Meanwhile, in India CII is aiming for 214 mn connections by 2014. As of now, India has around 6.8 mn broadband users, according to TRAI. So to achieve CII's target, work would have to be done on war footing and requires complete commitment of all the stakeholders. The Government is also showing serious involvement in converting this dream into reality. A projection of connecting various colleges and R&D centres has been lately been approved.

The report by iSuppli further infers that the new worldwide broadband subscribers added in the third quarter of this year are estimated to have reached 16.3mn, up 2% from the same period of last year.

archanasi@cybermedia.co.in