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Friday, 5 December 2008 08:36 UK Bengaluru, India


 

India and China to rule over broadband market

$23.1 billion revenues forecasted by 2012

By Subhankar Kundu @ Monday, August 25, 2008 1:20 PM

 
 

The industry analysts are of the opinion that the major two economically developing Asian developing nations - India and China – would record most number of broadband connections in the coming years. Western Europe has the highest number of broadband subscribers as of now but it’s quite likely to shift towards these two nations.

The consulting firm, Ovum says the Asia-Pacific region will grow with a compound annual growth rate (CAGR) of 4 percent. Analyst Claudio Castelli of Ovum has said that India and China are still adopting Digital Subscriber Line (DSL) at a rapid rate and will witness the fastest growth on the subscriber front, PC World reports.

The decline in price results in growing demand as well as thwarting revenue losses. The highly competitive market in these emerging Asian economies will put aback the emerged markets in the west if it’s believed to grow at a consistent rate as it is doing now.

Compared to the global market scenario, Castelli foresees a 40%  higher revenue growth in China and India from $18.1 billion to $23.1 billion by 2012 which implies a CAGR of 5 percent.

But on the global front, the analysis says 59.8 billion broadband connections would be added globally in 2007, forecasted to rise to 87.6 billion in 2012 at a CAGR of eight  percent.

A couple of factors could play a significant role in the future. One is the migration from legacy to modern technologies and the other is the wider usage of voice over IP and network-based applications. These factors will always keep the enterprise segment moving in acquiring the broadband services.
 
Higher bandwidth, reliability and reducing costs are the propositions enterprises go for. On being provided the same, the future of broadband looks bright. 

If some analysts are to be believed, the price decline is a short-term strategy for growth in subscribers but the same factors may have a significant effect on the global market in the longer term. X

 
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