APAC Global Leader In FTTx Subscribers

While DSL’s domination of wireline broadband subscribers in Asia-Pacific continues, FTTH and FTTB combined is forecasted to surpass DSL in 2014 and beyond, according to Ovum.

In a new study conducted for the FTTH Council Asia-Pacific , the independent telecoms analyst predicts that wireline broadband subscribers in Asia-Pacific will exceed 285 million in 2014. Asia-Pacific FTTx (FTTH/FTTB) will lead the growth of wireline broadband and is expected to exceed 129 million subscribers in 2014, with a CAGR of 26% over four years, compared to 0% for DSL and 5% for cable modem.

Julie Kunstler, Ovum principal analyst and co-author of the study, commented: “Ending 2010, four economies in Asia-Pacific had more than 25% household penetration. South Korea, followed by Japan, Hong Kong, and Taiwan tops the list.”

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The study also finds that although China’s FTTx household penetration is still very low, the number of FTTH/B subscribers’ base was close to Japan’s at year-end 2010, reaching almost 20 million subscribers. This leads to substantial future growth in the region.

Kunstler continued: “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.”

Varying FTTH/B subscriber growth rates across the economies are also noted, mainly due to broadband initiatives, government policies, and population characteristics. The top four FTTH/B penetration rate economies will continue to add FTTH/B subscribers, although at lower rates while the other economies will have strong FTTH/B growth rates or strong growth in both FTTH/B and mobile broadband.

“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,” concluded Kunstler.