Tech Hardware Supply Chain - Gazhoo

Bhavin Shah
(852) 2800-8538
bhavin.a.shah@jpmorgan.com
Asia Pacific Equity Research
20 April 2009
Broadband market outlook
By March 2008, 352 million households worldwide were online via broadband
subscription, representing worldwide penetration of only 5.3%. DSL is still the most
dominant of the broadband technologies, despite the fact that it is increasingly losing
share to cable modem and optical fibre technologies. However, according to IDC,
DSL will continue to be the dominant technology at least until 2011. Other
broadband technologies, such as fixed wireless and satellite broadband, should
remain be niche technologies.
The industry continues to face an increasing threat from mobile broadband services
such as WiMAX and LTE. As mobile broadband evolves to the speed of fixed
broadband and provides the added function of mobility, it remains to be seen who
emerges as the winner once the macro environment clears out. Low penetration
levels and higher growth in EM, in our view, are going to make the emerging
markets the key driver of the broadband market when the macro picture improves.
Figure 28: Worldwide broadband services subscriptions by technology (June 2008)
DSL
60%
Source: OECD.
Cable Modem
29%
Other
2%
Fibre + LAN
9%
Figure 29: Worldwide broadband subscribers by geographies (June 2008)
Number of BB subs in m
80
70
60
50
40
30
20
10
0
Source: OECD.
Czech Republic
Austria
Denmark
Switzerland
Belgium
Sweden
Poland
Mexico
Australia
Turkey
Netherlands
Spain
Canada
Italy
Korea
France
United Kingdom
Germany
Japan
United States
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