Contrary to some published reports the Arizona-based research firm contends
that broadband Internet services are alive and well in the U.S. and beyond.
In one of its latest studies, Broadband 2002: DSL & Cable Modem Services
Fuel Worldwide Subscriber Growth, In-Stat/MDR
analysts examine the growth of broadband Internet access subscribers in
the U.S. and worldwide.
Findings indicate that increasing user demands for faster connections
to the Web spurred substantial subscriber growth over the past year. Based
on In-Stat/MDR’s analysis, the number of worldwide broadband subscribers
passed the 30 million mark at the beginning of 2002. Analysts forecast
that by the end of this year, worldwide subscriber totals will surpass
46 million.
The high-tech market research firm reports that digital subscriber line
(DSL) access has become the premier broadband platform in the international
market, while cable modem services continue to do extremely well in the
US.
However, the availability of broadband access remains the single greatest
challenge to long-term broadband growth, since the majority of the world’s
telecom infrastructure cannot yet support broadband access technologies.
Because of the low penetration and adoption rates expected for cable
modems in the business sector, the residential market will continue to
be the real battleground between the broadband access technologies. In
the U.S., cable operators have rapidly made cable modem services available
to the majority of their residential service areas, while almost ignoring
the business community.
Not so fast
On the other hand, DSL has made inroads with American businesses, and
service providers have managed to increase their residential footprint
with self-installation service packages. A key advantage in winning new
broadband subscribers in the U.S. has been the cable industry’s “Triple
Play” bundled service package of voice, video and high-speed Internet
access—a marketing package that DSL service providers can rarely
match. In-Stat/MDR key findings include:
- In late 2001, the number of worldwide DSL subscribers surpassed 17
million, enabling DSL service to replace cable modem service as the
most widely used broadband access technology. A sharp rise in the number
of DSL subscribers in the Asia Pacific region sparked worldwide DSL
growth. - In the United States, cable modem subscribers continue to outnumber
DSL subscribers by a wide margin. At the beginning of 2002, there were
7.12 million U.S. cable modem subscribers and only 4.6 million DSL subscribers.
According to In-Stat/MDR, other broadband access technologies like satellite
broadband, fiber-to-the-home (FTTH), and fixed wireless services, are
merely bit players in the world of broadband. The three services account
for only five percent of current worldwide broadband subscribers.
Broader sense
Meanwhile, Boston-based research firm the Yankee
Group has something to say about a broader sense of business broadband
access.
The Yankee Group also finds that the broadband landscape is rapidly evolving.
While new technologies have begun to replace dial-up connections in millions
of homes in the U.S. and beyond, broadband connectivity to the enterprise
has remained relatively static.
The Yankee Group reports that American businesses continue to rely on
leased line services, mainly T1 and DS3 connections, which are provisioned
from major voice and data carriers. According to its study, these types
of connections will continue to serve as a core means of broadband connectivity.
But new technologies that are maturing on varying timetables will continue
to attract the interest of IT managers seeking cost savings.
According to Matt Davis, Yankee Group broadband access technologies planning
service director, the enterprise space clearly has several credible options
for alternative broadband connectivity for remote offices.
“Enterprise IT managers should expand their knowledge of these options
to take advantage of substantial cost-saving potential,” Davis said. Especially
when it comes to LAN-to-LAN interconnection, redundant fiber backup, and
connecting disaster recovery systems.
Among the technologies profiled in the report, Broadband Connectivity:
Options for the Enterprise, analysts review DSL, cable modem, passive
optical network (PON), fixed wireless, satellite, and free-space optics
(FSO) technologies that are each capable of delivering reliable cost savings
in different deployment scenarios.
However, Yankee Group finds that DS1- and DS3-based technologies will
not be easily displaced. While cost savings are attractive, enterprises
will continue to view dependability and functionality as the most important
features driving their broadband connectivity decisions.
