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China leads world in broadband growth

China accounted for 37% of all new broadband Internet subscribers added worldwide in the first quarter of 2010, according to new statistics from iSuppli.

And with the country's rapid growth set to continue, the analyst firm is urging vendors to work on a long-term China strategy or risk missing out on a highly lucrative market.

The company did not provide full subscriber figures for Q1, but said that China saw sequential growth of 57% during the quarter, making it the fastest growing global market. Based on figures from April and May, the second quarter will likely see "the blistering growth" continue, iSuppli added, predicting that new additions for that quarter will hit 5.5 million.

iSuppli forecasts that China will be home to 183.9 million broadband subscribers by 2014, up from 103.2 million in 2009.

"The broadband market in China is still going strong and [it] will likely remain the dominant [market] for years to come, assuming the economy remains stable," said Lee Ratliff, senior analyst for broadband and the digital home at iSuppli, in a statement.

Ratliff pointed out that growth in China is being driven at least in part by a government stimulus plan that will see $22 billion injected into the rollout of fibre access networks in the country by the end of 2011; the project will cover the establishment of over 80 million fibre broadband ports.

According to iSuppli, the stimulus programme will provide tax incentives and subsidies to domestic fibre broadband equipment manufacturers, and optical chip and optical module vendors. "Unlike previous stimulus programmes, this new policy directly targets and benefits the equipment manufacturers," iSuppli said.

Naturally, the analyst firm predicts that Chinese vendors such as Huawei, ZTE, Shanghai Bell Alcatel, and others will be the main beneficiaries of the stimulus programme and of broadband growth in China.

But there is still an opportunity for foreign players.

iSupplis recommends that Western vendors partner with local Chinese companies or deepen their existing ties with the top domestic vendors.

"And for vendors without a long-term strategy for China, they must develop one quickly or risk being left out of one of the most significant broadband markets in the world," iSuppli advised.

Источник: Total Telecom

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