Pyramid Research estimates AP’s total fiber subscriptions in 2011 to be 73.5m and to grow at a CAGR of 22.8% to reach 204.9m by 2016, representing 38.4% of all broadband connections. The growth will come from sizable markets such as China, Japan and South Korea, but other regional markets with government-supported national broadband plans (Australia, New Zealand, Singapore, Malaysia, Philippines and India) will help Asia-Pacific maintain its lead in FTTx throughout the forecast period.
The advantages of a fiber network over cable and wireless-based technology will provide the edge for fixed operators to better compete against both the cable providers and mobile operators in a fixed environment. In addition, the additional capacity of the high-bandwidth network can be a supplement to an integrated operator’s own mobile operation or allow it to branch into the wholesale business.
Yet having a future-proof technology doesn’t come cheap, and the expected expenditure for each FTTx deployment, depending on the size, usually crosses the $1bn mark. Even though the scale of the capital requirement, coupled with lengthy return on investment (usually 3-10 years), raise concerns, we believe fiber is the future for fixed operators in Asia-Pacific, and it’s an investment none can overlook. It is the foundation of fixed operators’ future growth, especially when pressured by HSPA+/LTE from the mobile operators and DOCSIS 3.0 from the MSOs. Fiber permits fixed operators to compete better against MSOs and mobile operators on broadband offerings, enables premium valued-added services to both residential and enterprise segments, and can improve both the environment and society, which will reward fixed operators in the long run.
This report outlines the competitive landscape in the broadband space in Asia-Pacific, highlighting the dynamics among fixed operators, mobile operators and MSOs. We then examine how a next-generation infrastructure such as FTTx can help fixed operators enhance their service offerings now and in the future. We also discuss the social and environmental benefits that fiber enables. The report concludes with two case studies highlighting successful fiber deployments.
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