$160 Billion Global Broadband Market in 2003
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PR Newswire - August 07, 1998 12:14
WASHINGTON, Aug. 7 /PRNewswire/ -- Broadband services will become a $160
billion worldwide business in five years as long as effective competition emerges in
global telecom markets. The global Internet explosion plus businesses' rapidly growing
data communications needs are fueling broadband demand. But competition to
incumbent telephone companies drives development and deployment of broadband
networks, and without competitive providers, broadband needs are not likely to be met.
According to The Strategis Group's latest study, Global Broadband Markets: 1998, the
number of businesses using broadband services will more than triple in the next five
years, and the number of households with broadband service will increase nine-fold. In
2003, the average business using broadband services will spend about $800 per month
for broadband access, while the average broadband household subscriber will spend
$35 a month mostly for high- speed Internet access.
Business and Residential Global Broadband Service Revenues
1998 - 2003
Year 1998 1999 2000 2001 2002 2003
Business 65,755.9 76,249.8 89,505.5 104,379.5 122,370.5 143,117.3
Residential 1,449.4 2,901.0 5,133.1 8,035.1 12,219.4 18,056.4
Revenue (US$ Millions)
Source: The Strategis Group, Inc.
"Now is the time for manufacturers to take advantage of broadband end-user equipment
opportunities," says Jonathan R. Tarlin, Senior Vice President of International
Telecommunications at The Strategis Group. The study forecasts a $20 billion
broadband end-user equipment market over the next five years consisting mostly of
DSL modems and cable modems.
Global Equipment Sales Revenue (millions US$), Annual and Cumulative
1998 - 2003
Year 1998 1999 2000 2001 2002 2003
Annual 528 1486 2432 3447 5142 8106
Cumulative 528 2015 4446 7893 13035 21141
Source: The Strategis Group, Inc.
The U.S. will continue to lead the world in adopting broadband services and
technologies. The Strategis Group's broadband forecasting model, detailed in Global
Broadband Markets: 1998, suggests that North America will have 45% of global
broadband service revenues in 2003, while Europe captures over one- quarter of global
broadband service revenues, and the Asia-Pacific region generates another quarter.
Share Of World Broadband Service Revenues By Region World data represents top
39 broadband markets.
Latin America Asia-Pacific Europe North America 4% 24% 27% 45%
Source: The Strategis Group, Inc.
Businesses Dominate Broadband Service Revenues
For operators and carriers, business markets are the primary revenue generators. The
Strategis Group expects business sectors to generate nearly 90% of worldwide
broadband service revenue. For equipment manufacturers, however, residential
broadband markets represent a huge market potential because more than twice as many
households as business firms will be using broadband services. The vast majority of
residential broadband equipment sales will be in the form of high-speed modems.
The Strategis Group, an edr company -- with offices in Washington, D.C., London, and
Singapore -- publishes in-depth market research reports and provides customized
consulting services to the cable TV, satellite, Internet, broadband, and wireless
communications industries. The Strategis Group's market studies, valuations, and
strategic planning projects provide crucial information to communications industry
leaders throughout the world. Please contact Elizabeth Harr-Bricksin at 202/530-7500
(voice), 202/530-7550 (fax), ebricksin@strategisgroup.com or Jonathan Tarlin at
202/530/7541 (voice), jtarlin@strategisgroup.com or www.strategisgroup.com for
more information.
SOURCE The Strategis Group
/CONTACT: Elizabeth Harr-Bricksin, 202-530-7500 or Jonathan Tarlin,
202-530-7541, both of The Strategis Group/
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