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Explosive China Growth Drives Asia-Pacific Broadband Market

Residential Subscriber Base Will Triple by 2010

Boston, MA - April 20, 2005 -- Driven by explosive growth in China, the number of homes using broadband Internet services in the Asia-Pacific region will grow from 61 million today to 176 million by 2010, according to a new Strategy Analytics forecast, "Residential Broadband Internet Service in the Asia-Pacific Region: Market Outlook & Analysis." The firm predicts that although China trails other Asian markets in broadband adoption today, the immense size of the Chinese consumer market will make it a key driver for broadband growth in the region. By 2010, the Chinese market will account for 64 percent of all residential broadband users in the region, up from less than 40 percent today.

"Household penetration for DSL and other types of broadband Internet access is still less than 10 percent in China," notes Martin Olausson, Senior Analyst with the Strategy Analytics Digital Consumer Practice. "In a market with over 400 million homes, this leaves plenty of room for growth over the next five years and beyond."

The Asia-Pacific region also includes countries that already lead the world in broadband adoption. 77 percent of homes in South Korea use broadband today, while Taiwan, Hong Kong and Singapore all boast penetration rates of 50 percent or more. In these mature markets, service providers will need to use a combination of higher access speeds, lower prices and rich media content to sustain growth over the next five years.


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