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Broadband services market seen at $900bn by 2012

05 сентября 2008

The global market for high-speed Internet services will be worth nearly $1 trillion by 2012, according to a report by research firm Yankee Group.

The broadband market, which includes revenue from services to consumers and businesses, as well as the amount spent on equipment for the underlying infrastructure, is currently worth $590 billion, Yankee Group said. By 2012, the market will grow to more than $903 billion, it projected.

The estimates are part of Yankee Group's concept of an "Anywhere" environment, where there is at least one broadband connection for every person on the planet.

"The Anywhere revolution is gathering in steam," Emily Green, president and chief executive of Yankee Group, said in an interview with Dow Jones Newswires. She noted that it took 10 years for the Internet to reach one billion people. The Internet will double its reach by 2012, she said.

The lion's share of revenue will continue to come from services sold to the consumer. The market for consumer broadband services is worth $435 billion this year, and will grow to $681 billion in 2012. Green noted that the figure doesn't include additional add-on services such as navigation on cellphones, or entertainment content riding over the network.

While the bulk of revenue will go to the carriers, Green said she still sees a gap in revenue and the need for further capital expenditures. As a result, carriers will need to look for other streams of revenue, such as advertising, she said.

"It's not unlike other forms of mass media like publishing," she said.

For longer-term investors, companies with a broader vision that works with the Anywhere economy are the best bet, she said. BT Group PLC and Verizon Communications Inc. are two such companies because they are spending the necessary money to upgrade their networks, Green said.

In addition, she also likes Spanish telecommunications giant Telefonica
S.A. for its investments in the faster-growing emerging markets.

The rapid changes will prove challenging for companies such as Motorola Inc., Nokia Corp. and Alcatel-Lucent, which still have to change their own businesses to match the changing environment, she said.

, Sweden and Italy will be among the first countries to reach the "tipping point" of the Anywhere economy in the next year. The U.S., however, won't be among them. It is considered a "transforming country," according to the study.

Green compared the widespread popularity of broadband to the different applications of electricity. Electricity went from powering lights to other devices such as coffee makers and razors. The same broad application will happen with broadband, which Green said has even more potential.

"In terms of the cultural and social impact, it will dwarf the last couple of revolutions we've seen," she said.

Источник: Total Telecom

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