Subject: [NEXTEL-1] Study: Broadband market to triple by 2008

From: [email-masked]
Date: Thu, 08 Jul 2004 15:39:52 -0400

Study: Broadband market to triple by 2008

By Dinesh C. Sharma
http://news.com.com/2100-1034-5260958.html

Story last modified July 8, 2004, 7:58 AM PDT

The worldwide base for broadband technology is expected to reach 325 
million subscribers by 2008, up from about 100 million at the end of
last 
year, according to new research from the Yankee Group.

Of this 325 million, about 200 million subscribers will be using DSL 
(digital subscriber line) service, up significantly from the 85 million 
people expected to be using that technology by the end of 2004, the
study 
found.

DSL growth will largely be fueled by the Asia-Pacific region, according
to 
the Yankee Group. DSL is expected to add between 25 million and 30
million 
subscribers per year, while rival cable modem technology will account
for 
around 8 million new subscribers annually.

The competition between cable and DSL is getting fiercer as the market 
grows. The Yankee Group expects steeper year-over-year growth for 
satellite, broadband wireless and other technologies as well.

In North America, though, cable service will maintain its lead, growing 
from 34 million at the end of last year to about 75 million in 2008. 
Satellite is expected to experience strong growth, also. By 2008, it's 
expected to have more than 12 million subscribers, or 4 percent of the
market.

Meanwhile, a recent report from the Federal Communications Commission
put 
the number of broadband lines in the United States at 28.3 million at
the 
end of 2003.

Calling the U.S. cable modem market an anomaly, Yankee Group analysts
said 
cable operators in the United States have optimized their networks and
are 
offering speeds twice as fast as DSL. This is prompting DSL players to 
slash prices to counter a superior product and make up for lagging
market 
share.

"Broadband access continues to be one of the largest and most profitable 
areas of telecommunications around the world," Lindsay Schroth, a senior 
analyst at Yankee Group, said in a statement. "Despite the downturn in 
telecom spending in the past few years, providers are expanding access 
networks and attracting new broadband subscribers with a variety of
access 
technologies."

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