The rate of broadband growth in China is slowing dramatically, creating a digital divide between city and rural areas, and challenging operators to find new sources of revenue growth, Ovum reports. Although Ovum still expects China to surpass the US in total broadband subscribers in 2008, that leaves a large proportion of the market untapped. It estimates there are 52.9 million broadband subscribers in China, a household penetration rate of 15.1%. Kevin Lee, Ovum analyst based in Hong Kong said. “We forecast steady broadband growth will push household penetration to 21% by 2010, equivalent to 106 million subscribers. This is nowhere near market potential”. Broadband growth was 57% in 2005 and 38% last year, according to Ovum, which predicts increases in the Internet and PC population and emerging applications such as peer-to-peer and operators’ push for IPTV will continue to boost demand for broadband.