OTT opportunities emerge as 2Mbps+ broadband subs set to double by 2017
Farncombe undertook a comprehensive study of the broadband markets in six key Southeast Asian (SEA) developing countries: Indonesia, Malaysia, Philippines, Thailand, Vietnam and India, that aims to find out if flagging broadband speeds prove a barrier for the development of OTT in the region.
The study analysed fixed and mobile broadband service offers, technologies, nominal and actual bitrates and pricing plans, which show that around 30% of the existing fixed broadband residential subscriptions offer speeds that are equal to or higher than 2Mbps – the threshold required by many OTT service providers for delivering video content to connected devices, including TVs.
Farncombe forecasts that this percentage will reach almost 50% by the end of 2017 – with more than 25m fixed broadband connections ≥ 2Mbps across the six countries by then. India will lead, accounting for 28% of the households in this segment, followed by Vietnam and Thailand. Cable and Fiber to the x (FTTx) will gradually increase their presence in the main cities and will increase with CAGR 2013-17 of 31% and 36% respectively. Wireless Broadband Access (mostly WiMAX) and other technologies such as satellite and Ethernet will remain niche alternatives with limited market shares. Malaysia takes the top position in terms of FTTx connections across the six SEA territories, with the average download bitrates increasing at a CAGR of 25% in the final three years to 2017. However, the average bitrates in India, Indonesia and Vietnam are increasing at a CAGR of less than 10%, bringing the average regional speed up to just 1.5Mbps by the end of last year.
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