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Broadband profits from rapid growth

Broadband is one of the fastest-growing technologies in history, industry analysts Point Topic report. The UK-based research group estimates that there are now more than 100 million broadband lines globally.

January 15, 2004

In the third quarter of 2003, the worldwide broadband market reached 89.4 million lines, up from 79.4 million lines at the end of June. With the rapid growth showing no sign of slowing, Point Topic calculates that there are now more than 100 million high-speed connections installed.

The global figures include all types of mass-market broadband services, such as broadband connections through fixed telephone line DSL (Digital Subscriber Line), cable modems and fiber-optic cables.

The broadband network is actually growing much more quickly than mobile usage did. It took 5.5 years for mobile phones to climb from 10 million to 100 million users, says Point Topic; by comparison it has taken only 3.5 years for broadband connections to reach the same level.

Price cuts
An important factor driving this year's strong broadband growth is price cuts by operators around the world. Point Topic's analysis shows that the major DSL operators lowered their prices by roughly 25% in the year to September 2003.

The figures also demonstrate that the broadband market is showing signs of maturing, particularly in the leading industrialized nations. Point Topic's figures show that, for the first time, all the G7 economic powers are now in the top 10 in terms of total broadband lines.

The United States and Japan remain at the head of the pack and although the fastest growth is still being enjoyed by South Korea in third place, China is quickly catching up. Point Topic reports that the country has more than 12 million lines and forecasts that it will overtake South Korea by the end of March 2004. Point Topic also expects that the Chinese will eventually become the world's biggest users of broadband.

Canada has the fifth-highest amount of broadband lines, followed by Germany, France, Taiwan, the UK and Italy.