ITU Telecom World 2003

October 13, 2003
Global broadband subscribers grew 72% in 2002

GENEVA -- Presenting an overview of the industry at the ITU Telecom World 2003, Dr. Tim Kelly, head, strategy and policy unit, International Telecommunications Unit (ITU), said that between Telecom World '99 and Telecom World' 03, telecom networks have continued to grow. According to him, fixed-line networks grew by 7.5 percent worldwide, mobile networks grew by 28.3 percent per year and the Internet grew by 24.5 percent per year.

He added that despite the crisis, industry revenues grew by 5.5 percent per year between 1999 and 2003. Although domestic telephone service revenues have declined in value due to price cuts and competition, but mobile phone service almost doubled in size due to increase in market size. Internet and broadband provided most of the rest of the growth.

According to the ITU, the number of global broadband subscribers grew 72 percent in 2002 to approximately 62 million. The Republic of Korea leads the way in broadband penetration, with approximately 21 broadband subscribers for every 100 inhabitants. Hong Kong (China) ranks second in the world with nearly 15 broadband subscribers per 100 inhabitants and Canada ranks third with just over 11 broadband subscribers per 100 inhabitants. Home users are driving the vast majority of broadband demand in all markets.

One reason for the sharp increase in broadband subscribers is the growing demand for faster Internet speeds. Broadband services provide Internet connections that are at least five times faster than earlier dial-up technologies, enabling users to play online games and download music and videos, as well as share files and access information much faster and more efficiently than before. In many markets, increased competition among broadband service providers has also triggered lower prices for consumers, boosting demand and making broadband access more affordable.

Today, approximately one in every 10 Internet subscribers worldwide, or just over 5 percent of the total installed base of fixed lines worldwide, has a dedicated broadband connection. However, many more people share the benefits of high-speed Internet access through a local area network (LAN) at work or at school. In the Republic of Korea, which is approximately three years ahead of the global average in converting Internet users to broadband, broadband subscribers represent 94 percent of total Internet subscribers.