Fiber Optic Broadband To Make Up 19% Of Subscriptions By End-2013

Fiber Optic Broadband To Make Up 19% Of Subscriptions By End-2013

August 29, 2013

By the end of 2013, fiber optic will account for 19% of the worldwide fixed broadband subscriptions, according to a study from research company ABI Research, which indicates a shift in adoption from DSL to fiber optics as telecom providers continue to expand their infrastructure.

The market share of fiber optics is growing in both developed and emerging markets. For instance, telecom companies based in China, including China Unicom and China Telecom, are rolling out fiber networks more aggressively, said Jake Saunders, vice president and practice director at ABI Research.

Furthermore, the research firm anticipates that fiber-optic broadband subscribers will grow by 25.6 million worldwide to top 124 million subscribers globally by the end of the year, while DSL broadband subscriptions are seen to decline by around 50% from last year, Khin Sandi Lynn, industry analyst at ABI, said.

During the first quarter of the year alone, total DSL subscriptions declined by three million, while at the same time fiber-optic adoption rose to 37.6 million from 32.9 million.

Google Fiber, for example, has been pushing Internet service providers around the globe to compete and the company is becoming a major factor contributing to the increasing fiber optic Internet service roll-out. Google’s broadband, however, is not coming to users any time soon, as building the company’s affordable, super-fast Internet service throughout America would cost a massive $140 billion, so it is easy to understand why Google is not in a hurry to expand its service.