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High-speed broadband: VDSL vs Fibre

Very High Bitrate DSL cheaper to deploy

Despite the economic downturn, the global broadband market remained healthy in 2009, with demand for high-speed broadband increasing with the popularity of services such as IPTV and online gaming.

Since more people are buying laptops, notebooks and PCs, home networking is becoming essential.

Global broadband service revenue has continued increasing over the past few years regardless of the recessionary pressures.

According to ABI Research market data, fixed broadband service revenue totalled US$164 billion in 2009, an increase from $145 billion in 2008.

ABI Research practice director Jason Blackwell comments: "The increasing demand for broadband helps increase subscriber numbers as well as service revenue. Global fixed broadband service revenue is expected to exceed $210 billion in 2014."

Among the broadband technologies, DSL still maintains the largest market share, followed by cable and fibre broadband.

Service revenue for DSL broadband totalled nearly $100 billion in 2009. ABI Research expects DSL broadband service revenue to reach just over $103 billion in 2014 with a Compound Annual Growth Rate (CAGR) of 0.6 percenrt from 2009 to 2014.

Recently, many operators are improving DSL broadband by deploying VDSL (Very High Bitrate DSL), which is cheaper to deploy than fibre as carriers can use existing copper infrastructure.

"The higher speed of VDSL broadband helps operators to provide more services such as video on demand and interactive gaming. That can help to generate more revenue for operators," notes research associate Khin Sandi Lynn.

"Some operators currently offering VDSL are Telus Canada, O2 Czech, OTE Greece and Tele2 Netherlands."

Fibre broadband service revenue is increasing fast, with a forecast CAGR of 23.3% between 2009 and 2014.

ABI Research forecasts service revenue for fibre broadband to reach $24.4 billion in 2010.

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