Managed IPTV, OTT to drive fixed broadband growth

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Consumer demand for managed IPTV and over-the-top content services will drive fixed broadband into 745 million homes worldwide by 2017, according to a study released by Digital TV Research. That forecast sees the market growing from 473 million in 2010 and 578 million by the end of this year.

Of the 167 million additions, China will lead the pack with 73 million and India will toss in another 22 million, the researchers said.

The increase will be driven by the need for speed to watch video across IP-connected devices, said report author Simon Murray, noting that this demand will, in some instances, be sated by government assistance.

"Many governments have initiated National Broadband Network projects which involve extensive capital expenditures to build out modern (usually fiber) networks," Murray said in a Digital TV Research news release. "In other countries, greater competition has encouraged operators to construct fiber networks from their own initiatives."

About 10 percent of fixed broadband households will receive speeds exceeding 100 Mbps by 2017, the report said, as opposed to the 1.6 percent who got these kinds of speeds this year. Sweden, at 25.5 percent penetration, will have the highest proportion of high-speed users, while India will have the lowest at 3 percent.

On the other hand, the report said, there will be "dramatic" declines in the number of households that receive less than 2 Mbps.

"China will drop from 60 million to 37.7 million... the U.S. will fall from 14.2 million to nothing by 2017," the report said.

Contrarily, India will actually increase its low-speed households from 6.6 million to 11.4 million by 2017.

Overall, the report said, global fixed broadband household penetration will be 49.2 percent by 2017, up from 33.5 percent in 2010 and 40.3 percent this year. Of the 40 countries surveyed, South Korea will have the highest household penetration (93.7 percent) in 2017 and India and Indonesia (14 percent) the lowest.

For more:
- Digital TV Research issued this press release (.pdf)

Related articles:
ABI: North America leads world in broadband penetration
Fixed telecom market on the upswing in Asia

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