Increasing Affordability of Broadband Enables Strong Traction for the Service in the Asia Pacific Markets

The social media revolution and Web 2.0 have enhanced prospects for the Asia Pacific broadband market. More and more consumers are feeling the need to connect online and the Internet has become a highly indispensable tool. Broadband service affordability is increasing with falling prices of devices, such as PCs and net-books as well as broadband subscription pricing. “The Asia Pacific fixed broadband subscriber base grew at an impressive rate of 20.5 percent over the previous year to reach 187.3 million at the end of 2009,” notes the analyst of this research service. “The growth in subscribers is being fueled by the emerging markets where the high level of competition is pushing down the prices of entry level packages.” Governments in regions, such as Australia, Malaysia, and Singapore are funding roll-outs of fiber-based high-speed broadband networks. Fixed broadband technology is evolving with digital subscriber line (DSL), cable broadband, and passive optical network (PON) being able to support higher throughput service at a lower capital expenditure (CAPEX) per subscriber. Due to the regional household broadband penetration rate of less than 20 percent, the market is still at its growth stage and the expected compound annual growth rate (CAGR) from 2009 to 2015 expected is more than 10 percent. By 2015, subscribers from the emerging markets will account for more than 78 percent of the subscribers in the region.

Although market prospects look upbeat, there are some impediments stalling its momentum. The high CAPEX per subscriber for investment poses a challenge for fixed broadband providers. To build better business cases, providers are offering bundled services and optimizing the potential of the deployed local loop. In some markets, the high-leased pricing from incumbent fixed operators makes it difficult for alternative ISPs to offer broadband service competitively. In such a scenario, providers must penetrate new market segments and bundle their services to provide enhanced value to their subscribers.

For high-speed broadband access, there have been investments in fiber to the premises (FTTP) and fiber to the home (FTTH) networks in Asia Pacific. Most operators favor DSL, but many in the developed markets are migrating to FTTH/fiber to the building (FTTB) if they are able to find a business case. In the emerging markets, FTTH/FTTB will be confined to the urban areas. Many pay TV providers in the region are also using data over cable service interface specification (DOCSIS) to provide cable broadband service to their consumers. Faced with average revenue per user (ARPU) decline, operators in the emerging markets are depending on subscriber expansion to grow their revenue streams. Providers in the saturated markets are foraying into the content business with Internet protocol TV (IPTV) and some are experiencing success. Broadband providers are experiencing stiff competition from worldwide interoperability for microwave access (WIMAX) and other mobile broadband providers. “Providers in these markets have had to bring their tariffs down and try to differentiate with a premium service,” says the analyst. “Many providers now offer both and mobile broadband and fixed broadband service - fixed broadband for high speed service at home and mobile broadband for access on the go.”

TABLE OF CONTENTS

Study Overview                                             
Definition of Terms                                         
Research Methodology                                        
Asia Pacific Broadband Service Highlights                   
Industry Challenges, Market Drivers and Market Restraints     
Asia Pacific Subscriber and Revenue Forecasts                
Asia Pacific Subscriber and Revenue Shares                    
Asia Pacific ARPU Trend                                       
Other Trends in Asia Pacific Broadband Market                 
Country Profile: Australia                                  
Country Profile: China                                        
Country Profile: Hong Kong                                    
Country Profile: Indonesia                                   
Country Profile: India                                         
Country Profile: Japan                                       
Country Profile: Malaysia                                    
Country Profile: New Zealand                            
Country Profile: Pakistan                                  
Country Profile: The Philippines                             
Country Profile: Singapore                              
Country Profile: South Korea                                 
Country Profile: Taiwan                                      
Country Profile: Thailand                                   
Country Profile: Vietnam                                  
Conclusion                                                
About Frost & Sullivan                                      

LIST OF FIGURES

Broadband Market: Impact of Top Seven Industry Challenges (Asia Pacific), 2010-2015      
Broadband Market: Market Drivers Ranked in Order of Impact (Asia Pacific), 2010-2015   
Broadband Market: Market Restraints Ranked in Order of Impact (Asia Pacific), 2010-2015 
Broadband Market: Revenue Forecasts (Asia Pacific), 2004-2015                         
Broadband Market: Revenue Forecasts (Australia), 2004-2015                              
Broadband Market: Revenue Forecasts (China), 2004-2015                                  
Broadband Market: Revenue Forecasts (Hong Kong), 2004-2015                           
Broadband Market: Revenue Forecasts (Indonesia), 2004-2015                             
Broadband Market: Revenue Forecasts (India), 2004-2015                                    
Broadband Market: Revenue Forecasts (Japan), 2004-2015                                  
Broadband Market: Revenue Forecasts (Malaysia), 2004-2015                              
Broadband Market: Revenue Forecasts (New Zealand), 2004-2015                        
Broadband Market: Revenue Forecasts (Pakistan), 2004-2015                              
Broadband Market: Revenue Forecasts (The Philippines), 2004-2015                     
Broadband Market: Revenue Forecasts (Singapore), 2004-2015                            
Broadband Market: Revenue Forecasts (South Korea), 2004-2015                         
Broadband Market: Revenue Forecasts (Taiwan), 2004-2015                                 
Broadband Market: Revenue Forecasts (Thailand), 2004-2015                               
Broadband Market: Revenue Forecasts (Vietnam), 2004-2015        
                      

LIST OF CHARTS


Broadband Market: Market Engineering Measurements (Asia Pacific), 2009           
Broadband Market: Subscriber Base (Asia Pacific), 2004-2015                             
Broadband Market: Combined Household Broadband Penetration Rates for the Top 15 Markets (Asia Pacific), 2004-2015   
Broadband Market: Revenue Forecasts (Asia Pacific), 2004-2015                         
Broadband Market: Subscriber Share Analysis (Asia Pacific), 2009                       
Broadband Market: Subscriber Share Analysis (Asia Pacific), 2015                       
Broadband Market: Subscriber Share Analysis by Provider (Asia Pacific), 2009      
Broadband Market: Revenue Share Analysis (Asia Pacific), 2009                          
Broadband Market: Revenue Share Analysis (Asia Pacific), 2015                          
Broadband Market: ARPU Trend (Asia Pacific), 2004-2015                                   
Broadband Market: Household Penetration Rate versus ARPU (Asia Pacific), 2009 
Broadband Market: ARPU Growth versus Revenue Growth (Asia Pacific), 2005 to 2009                          
Broadband Market: Penetration, Size and Growth (Asia Pacific), 2009-2015           
Broadband Market: Access Technology Trend (Asia Pacific), 2004-2015                
Broadband Market: Market Engineering Measurements (Australia), 2009               
Broadband Market: Subscriber Base (Australia), 2004-2015                                  
Broadband Market: Revenue Forecasts (Australia), 2004-2015                              
Broadband Market: Access Technology Trend (Australia), 2004-2015                     
Broadband Market: Subscriber Share Analysis (Australia), 2009                           
Broadband Market: Subscriber Base (China), 2004-2015                                      
Broadband Market: Revenue Forecasts (China), 2004-2015                                  
Broadband Market: Household Broadband Penetration versus ARPU (China), 2004-2015                                 
Broadband Market: Access Technology Trend (China), 2004-2015                         
Broadband Market: Subscriber Share Analysis (China), 2009                              
Broadband Market: Market Engineering Measurements (Hong Kong), 2009            
Broadband Market: Subscriber Base (Hong Kong), 2004-2015                              
Broadband Market: Revenue Forecasts (Hong Kong), 2004-2015                           
Broadband Market: Household Broadband Penetration versus ARPU (Hong Kong), 2004-2015   
Broadband Market: Access Technology Trend (Hong Kong), 2004-2015                 
Broadband Market: Subscriber Share Analysis (Hong Kong), 2009                        
Broadband Market: Market Engineering Measurements (Indonesia), 2009              
Broadband Market: Subscriber Base (Indonesia), 2004-2015                               
Broadband Market: Revenue Forecasts (Indonesia), 2004-2015                             
Broadband Market: Household Broadband Penetration versus ARPU (Indonesia), 2004-2015   
Broadband Market: Access Technology Trend (Indonesia), 2004-2015                    
Broadband Market: Subscriber Share Analysis (Indonesia), 2009                          
Broadband Market: Market Engineering Measurements (India), 2009                     
Broadband Market: Subscriber Base (India), 2004-2015                                 
Broadband Market: Revenue Forecasts (India), 2004-2015                                 
Broadband Market: Household Broadband Penetration versus ARPU (India), 2004-2015       
Broadband Market: Access Technology Trend (India), 2004-2015                           
Broadband Market: Subscriber Share Analysis (India), 2009                              
Broadband Market: Market Engineering Measurements (Japan), 2009                   
Broadband Market: Subscriber Base (Japan), 2004-2015                                   
Broadband Market: Revenue Forecasts (Japan), 2004-2015                                 
Broadband Market: Household Broadband Penetration versus ARPU (Japan), 2004-2015       
Broadband Market: Access Technology Trend (Japan), 2004-2015                         
Broadband Market: Subscriber Share Analysis (Japan), 2009                                
Broadband Market: Market Engineering Measurements (Malaysia), 2009               
Broadband Market: Subscriber Base (Malaysia), 2004-2015                                 
Broadband Market: Revenue Forecasts (Malaysia), 2004-2015                              
Broadband Market: Household Broadband Penetration versus ARPU (Malaysia), 2004-2015      
Broadband Market: Access Technology Trend (Malaysia), 2004-2015                    
Broadband Market: Subscriber Share Analysis (Malaysia), 2009                           
Broadband Market: Market Engineering Measurements (New Zealand), 2009         
Broadband Market: Subscriber Base (New Zealand), 2004-2015                            
Broadband Market: Revenue Forecasts (New Zealand), 2004-2015                        
Broadband Market: Household Broadband Penetration versus ARPU (New Zealand), 2004-2015  
Broadband Market: Access Technology Trend (New Zealand), 2004-2015               
Broadband Market: Subscriber Share Analysis (New Zealand), 2009                      
Broadband Market: Market Engineering Measurements (Pakistan), 2009               
Broadband Market: Subscriber Base (Pakistan), 2004-2015                                 
Broadband Market: Revenue Forecasts (Pakistan), 2004-2015                              
Broadband Market: Household Broadband Penetration versus ARPU (Pakistan), 2004-2015     
Broadband Market: Access Technology Trend (Pakistan), 2004-2015                     
Broadband Market: Subscriber Share Analysis (Pakistan), 2009                           
Broadband Market: Market Engineering Measurements (The Philippines), 2009      
Broadband Market: Subscriber Base (The Philippines), 2004-2015                        
Broadband Market: Revenue Forecasts (The Philippines), 2004-2015                     
Broadband Market: Household Broadband Penetration versus ARPU (The Philippines), 2004-2015  
Broadband Market: Access Technology Trend (The Philippines), 2004-2015           
Broadband Market: Subscriber Share Analysis (The Philippines), 2009                  
Broadband Market: Market Engineering Measurements (Singapore), 2009             
Broadband Market: Subscriber Base (Singapore), 2004-2015                                
Broadband Market: Revenue Forecasts (Singapore), 2004-2015                            
Broadband Market: Household Broadband Penetration versus ARPU (Singapore), 2004-2015        
Broadband Market: Access Technology Trend (Singapore), 2004-2015                   
Broadband Market: Subscriber Share Analysis (Singapore), 2009                          
Broadband Market: Market Engineering Measurements (South Korea), 2009          
Broadband Market: Subscriber Base (South Korea), 2004-2015                            
Broadband Market: Revenue Forecasts (South Korea), 2004-2015                         
Broadband Market: Household Broadband Penetration versus ARPU (South Korea), 2004-2015      
Broadband Market: Access Technology Trend (South Korea), 2004-2015               
Broadband Market: Subscriber Share Analysis (South Korea), 2009                      
Broadband Market: Market Engineering Measurements (Taiwan), 2009                  
Broadband Market: Subscriber Base (Taiwan), 2004-2015                                     
Broadband Market: Revenue Forecasts (Taiwan), 2004-2015                                 
Broadband Market: Household Broadband Penetration versus ARPU (Taiwan), 2004-2015           
Broadband Market: Access Technology Trend (Taiwan), 2004-2015                        
Broadband Market: Subscriber Share Analysis (Taiwan), 2009                           
Broadband Market: Market Engineering Measurements (Thailand), 2009                
Broadband Market: Subscriber Base (Thailand), 2004-2015                              
Broadband Market: Revenue Forecasts (Thailand), 2004-2015                            
Broadband Market: Household Broadband Penetration versus ARPU (Thailand), 2004-2015  
Broadband Market: Access Technology Trend (Thailand), 2004-2015                     
Broadband Market: Subscriber Share Analysis (Thailand), 2009                         
Broadband Market: Market Engineering Measurements (Vietnam), 2009                
Broadband Market: Subscriber Base (Vietnam), 2004-2015                               
Broadband Market: Revenue Forecasts (Vietnam), 2004-2015                             
Broadband Market: Household Broadband Penetration versus ARPU (Vietnam), 2004-2015   
Broadband Market: Access Technology Trend (Vietnam), 2004-2015                     
Broadband Market: Subscriber Share Analysis (Vietnam), 2009