The number of subscribers to cable modem broadband internet services is set to increase three-fold from 2002 to the end of 2007, according to a new forecast from IMS Research.
IMS says that the majority of growth in terms of gross subscriber numbers will come from North America. However, Asia and Europe will also begin to see real growth in cable modem users, with each region doubling or tripling the number of subscribers by 2007.
The US is expected to see more than 15 million new subscribers by the end of 2007, followed by Japan with an increase of over 6 million. The UK and Ireland combined show the next largest rise, with an increase of over 2.5 million by the end of 2007.
There are currently just over 800,000 cable internet customers in the UK according to separate figures from Strategy Analytics (see UK Broadband Net Penetration To Hit 40% By 2008, Says Strategy Analytics). Oftel says that take-up rates are faster in the UK than in other key markets such as France, Germany, Sweden and the US (see UK Gaining Ground In Broadband Arena).
IMS says the growth rates can be attributed to rising digital cable television coverage and the increasing need for high bandwidth internet services for applications including streaming video, video on demand and online gaming.
“Online games … are an example of applications that are projected to encourage households to upgrade to broadband internet access,” says Wyley Johnson, IMS Research market analyst. “Additionally, online games for the personal computer should also encourage players to upgrade their internet connectivity to broadband.”
This assessment concurs with eMarketer, which predicts that games consoles such as Microsoft’s Xbox will drive broadband uptake (see Broadband To Reach 40m Western European Homes By 2005).
