Broadband Access to Surge from $57 Billion in 2005 to $156 Billion by 2009
Total
spending on Internet access (broadband Internet access and dial-up
Internet access) in the international markets reached $113.3 billion in
2005 and is expected to grow to $139.8 billion in
2006 and $221.6 billion by 2009, an 18.3% compound annual growth
rate (CAGR), according to TIA's
2006 Telecommunications Market Review and Forecast, an annual study by
the Telecommunications Industry Association (TIA).
| 2005 | 2009 | CAGR | |
| Total Spend on Internet Access | $139.8 B | $221.6 B | 18.3% |
| Broadband Internet Access | $57.6 B | $156.1 B | 28.3% |
| Dial-up Internet Access | $55.7 B | $65.5 B | 4.2% |
| Telecom Equipment Revenues | $275.9 B | $379.5 B | 8.3% |
As the Internet market expands in these international regions and online traffic grows, the infrastructure will need to expand. Hence, TIA predicts revenue from telecommunications equipment will increase at an 8.3% CAGR through 2009, from $275.9 billion in 2005 to $379.5 billion in 2009.
South Korea has the world's most advanced broadband market, with 70% household penetration in 2005. The Netherlands is second at 60%, followed by Canada at 52%. Denmark (45%) and Japan (42%) are the only other countries with broadband penetration exceeding 40%. The United States ranks sixth in broadband penetration at 39%, followed by Finland and Switzerland at 35% and 31%, respectively. France at 28% and Sweden at 27% round out the top 10.
China has 35 million broadband subscribers in 2005. By 2009, nearly a third of all households in Asia/Pacific will access the Internet through a broadband connection. Europe ranks third in broadband penetration at 17.8% in 2005, a figure TIA expects will more than double to 38.5% in 2009. Canada will remain the leader in 2009, as three-quarters of all households are expected to be using broadband. The United States will retain its number two ranking as a region, with penetration rising to 63.1%. From a small base, broadband penetration in Latin America is taking off. By 2009, TIA projects broadband penetration in Latin America will rise to 12.8%, more than four times the 2.9% total in 2005. In Middle East/Africa, less than 1% of all households have a broadband connection. A market is beginning to emerge in that region; TIA expects penetration to edge up to nearly 3% in 2009.
