US broadband penetration rate is no longer in the top ten, despite having the greatest number of broadband households globally, with 34.3 million at the end of 2004, according to eMarketer’s new country by country estimates.
The analysts predict China to take overtake the US in terms of total broadband households, even though its current penetration rate is only 6.5%, compared to 29.9% for the US.
Commenting on the estimates, Ben Macklin, eMarketer’s senior analyst covering the broadband market, said: “Broadband has grown dramatically in China over the last two years, from 4 million broadband households in 2002 to over 23 million in 2004.”
He continued: “Consistent economic growth over the last decade has enabled China to invest heavily in its telecommunications infrastructure so that in 2005 broadband is widely available in the major metropolitan centres.”
The leader in broadband penetration continues to be South Korea, with its 73% penetration rate resulting from a very competitive broadband market and vigorous government support in the late 1990s. Hong Kong follows, with a penetration rate of almost 60%, while Taiwan has a rate just over 50%.
In Europe, the Netherlands enjoyed a strong performance during 2004, jumping ahead of Denmark and Belgium to lead the region in broadband penetration.
According to Macklin, there are three important success factors common to leading broadband markets across the globe; “choice, price and government support.”
He points out that in the leading markets consumers have a choice of either digital subscriber lines (DSL) or an alternative broadband infrastructure such as the cable TV network. Choice leads to competition, which leads to price reductions and service innovation.
eMarketer forecasts Latin America to be the fastest growing region in 2008, albeit currently from a very small base (see Latin America Broadband Back On Track).
The Asia-Pacifc region is predicted to outgrow Western Europe and North America, driven by the spread of broadband in China, and will account for 145.8 million broadband households by 2008, about 65 million more than Western Europe and almost 70 million more than North America.
Elsewhere, in its Europe Broadband report, eMarketer revealed that Europe was performing strongly in terms of broadband adoption, with penetration in Western Europe increasing by nearly 65% over 2004, twice the rate of the US (see Europe Enjoys Impressive Growth In Broadband Up-Take).
Globally, broadband analysis company, Point-Topic, revealed that a record 50 million broadband lines were added in 2004, bringing the total at the end of the year to 150.5 million (see Global Broadband Penetration Exceeds 2004 Forecasts).
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