Global Broadband Revenue Hits $113B

Worldwide spending on Internet access, both broadband and dial-up, hit
$113.3 billion in 2005 and is projected to top more than $200 billion by
2009, according to the Telecommunications Industry Association’s (TIA)
latest forecast.

According to the TIA, broadband access will drive equipment revenue in the
next four years as countries move to more actively support high-speed
access. Overall, TIA predicts a compound annual growth rate of 18.3 percent.

In its annual Telecommunications Market Review and Forecast, TIA ranked
South Korea as the most advanced broadband market in the world in 2005 with
a 70 percent household penetration.

The Netherlands came in second at 60 percent, with Canada (52 percent),
Denmark (45 percent) and Japan (42 percent) rounding out the top five
countries in consumer broadband penetration.

The United States, at 39 percent, claimed sixth place on the TIA list,
followed by Finland (35 percent), Switzerland (31 percent), France (28
percent) and Sweden (27 percent).

The TIA notes that while the Asia/Pacific region has two of the top five
countries in broadband penetration, it only ranks fourth as a region (11.5
percent) behind Canada, the United States and Europe (17.8).

The report predicts Europe as a region will more than double its consumer
broadband penetration rate to 28.5 percent by 2009. Canada is expected to
retain its regional leadership with as many as three quarters of all
households using broadband over the next three years.

The United States is forecast to retain its second spot in regional
broadband with penetration rates rising to 63.1 percent by 2009.

Among the fastest growing countries for broadband is Latin America, which is
expected to rise to 12.8 percent, more than four times its 2.9 percent
penetration rate in 2005.

The Africa/Middle East region had only a one percent broadband penetration
rate in 2005. The TIA predicts that number will rise to approximately three
percent by 2009.

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