INDIA IN TOP THREE COUNTRIES WORLDWIDE FOR GLOBAL BROADBAND GROWTH



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INDIA IN TOP THREE COUNTRIES WORLDWIDE FOR GLOBAL BROADBAND GROWTH Broadband Forum predicts top ten position is coming close 24 March 2011, New Delhi, India India s phenomenal growth in broadband in 2010 second only to China and the United States is leading towards the country soon becoming one of the top ten users of broadband in the world. That is the message being delivered today at the Convergence India event in New Delhi by Broadband Forum Chief Executive Officer Robin Mersh. Source: Point Topic, 2011 India added more than 2.5 million new lines of broadband last year and now stands at No13 in the world having been barely in the top 50 of broadband countries just six years ago. India has been steadily climbing the rankings in terms of broadband subscribers for the last 6 years. It has gone from 50 th to 13 th in only 6 years and will be knocking on the door of the top 10 within a year or two, says Oliver Johnson, chief analyst with Point Topic. There has been tremendous and consistent growth in broadband across India in recent years, yet this is just the tip of the iceberg, said Mr. Mersh. Both fixed and wireless broadband options abound, and the Broadband Forum is doing all it can to help India s providers engineer smarter and faster networks. Looking at the global picture, 2010 was also a landmark year for international broadband subscriptions - following the milestone half billion lines achieved in July 2010, subscriber figures

continued to climb steadily and ended the year at 523,066,022 a net addition of over 55 million lines worldwide during the year according to the figures prepared by Point Topic (http://www.point-topic.com) and announced today by the Broadband Forum. IPTV subscription had a record 34.6% growth in 2010. With more and more devices coming online and broadband growing at such a steady rate, the timing could not be better for the release of BroadbandSuite 4.0, the IPv6 Toolkit of the Broadband Forum. The final quarter of 2010 followed a similar pattern to the rest of the year in terms of percentage growth in broadband subscribers, reflecting a steady and sustained increase which was broadly in line with the previous two years. Asia is set to overtake Europe during 2011 with China still dominating the rankings both for total subscribers and net additions, as well as in percentage growth terms. Meanwhile by the end of 2010 the total number of IPTV subscribers had reached almost 45.4 million, representing over 11.5 million new subscribers over the year and an annual increase of 34.6%. The fourth quarter was the strongest quarter for IPTV growth, adding more than 3.4 million new subscribers and accounting for 8% of the total growth. With great broadband commercial success comes real world logistical problems - the surge of new devices coming online will soon exhaust the IPv4 address pool. To address this looming problem, the Broadband Forum focused our resources to ensure specifications were in place for a smooth integration of the new Internet protocol, IPv6 into network and device management around the world. The BroadbandSuite 4.0 IPv6 Toolkit defines the network support of IPv6 from core to user, brings IPv6 to all TR-101 based network deployments, allows remote management of IPv6 devices, is scalable to address trillions of devices, and future enhancements have the potential to enrich the user experience (supporting secure, mobile and nomadic applications) and enable the proliferation of connected user devices. Most importantly, this IPv6 toolkit will help service providers reduce the impact of IPv4 protocol exhaustion on their services today while ensuring the growth of new users, devices and applications continues unhampered. IPTV Regional growth Europe held on to its number one regional spot, but the growth rate was lower in comparison to other markets, mostly due to maturing IPTV territories such as France and Belgium. Asia showed strong growth with over 50% for the year and is the one to watch to overtake Europe in 2011 as largest IPTV subscriber base. And although the region starting with a low overall number of subscribers, the Middle East and Africa (MEA), had the strongest percentage growth - at 63.5%.

Q42009 Q42010 % increase Europe 16,586,495 20,717,682 24.91% Asia 10,837,200 16,365,767 51.01% Americas 6,134,222 8,062,478 31.43% Middle East and Africa 133,652 218,500 63.48% Global 33,691,569 45,364,427 34.65% Six of the top 10 IPTV countries are in Europe, with France remaining the leading IPTV nation, passing the 10 million mark for the first time. China (including Hong Kong, Macau and Taiwan) also passed 10 million, and is closing the gap on France. It will almost certainly overtake France in Q1 or Q2 2011. 2009Q4 2010Q3 2010Q4 France 8,555,000 9,814,640 10,255,000 China (all territories) 6,526,000 9,078,000 10,002,000 USA 5,641,000 6,839,053 7,301,800 South Korea 2,370,219 3,205,026 3,645,650 Japan 1,774,981 2,081,457 2,213,117 Germany 1,121,000 1,387,500 1,513,200 Belgium 752,000 920,000 975,000 Spain 798,757 845,400 858,200 Italy 826,000 831,000 819,000 Sweden 654,000 739,500 770,000 Broadband Trends and Overall Growth 2010 saw a steady rise in the number of new broadband subscribers with 56 million subscribers added, accounting for 12% annual growth. Asia is moving to become the largest broadband region in the world and is likely to overtake Europe during 2011 in terms of total broadband subscribers. The Americas and the Middle East & Africa are still showing plenty of activity, but Europe and Asia show faster broadband adoption.

Region Q409 Q110 Q210 Q310 Q410 Europe 175,746,887 179,269,755 182,444,480 185,296,595 188,881,105 Asia 153,720,190 161,771,644 169,375,420 177,816,795 184,591,415 Americas 123,505,797 126,091,441 128,047,756 130,662,813 133,861,702 Middle East and Africa 14,099,117 14,607,372 15,023,364 15,323,502 15,683,800 Total 467,071,991 481,740,212 494,891,020 509,099,705 523,018,022 Asia is made up of a mixture of rapidly growing as well as relatively saturated mature markets and a large and increasingly affluent population. This means growth from new subscribers as well as a number of users trading up to higher speed broadband options as their broadband usage increases and local availability allows. China continues to dominate the rankings both for total subscribers and net additions as well as the most rapidly growing, in percentage terms, market in the top 10 over the last 12 months. The Chinese broadband juggernaut continues to overshadow other markets. Growth is accelerating and this quarter is a significant improvement on the same period in 2008 and 2009, says Oliver Johnson, chief analyst Point Topic. While China dominates, there continues to be plenty of growth in other parts of the market. The US, Japan and the UK all fared better in 2010 than they did in 2008 and 2009. Germany is doing reasonably well too, however there are indications of a slowing in other areas, such as France, Russia and Italy due to these being well established markets.

Top 10 Broadband Countries Q409 Q310 Q410 China (all territories) 114,043,648 131,748,298 136,496,883 USA 82,724,402 85,665,658 87,172,827 Japan 31,913,500 33,858,800 34,467,000 Germany 24,869,450 26,114,350 26,715,350 France 18,986,700 19,616,000 19,887,530 UK 18,356,000 19,210,000 19,607,600 South Korea 16,348,571 16,945,182 17,202,641 Italy 13,343,890 14,072,128 14,257,650 Brazil 10,921,400 12,168,900 12,656,200 Russia 9,938,823 11,196,447 11,619,000 Meanwhile India continues its progress towards the Top 10. It will overtake Spain in the next quarter in terms of total fixed broadband subscribers and there is a possibility it will be in the top 10 by the end of the year.

Technology Overview DSL continued to be the global access leader supporting 331 million subscribers. Cable s market share is eroding and now sits at 106 million, while fiber is growing fast and is now serving 72 million customers. Fixed Wireless Access (FWA) and alternative internet access technologies continue to add market share as markets start to infill some areas where for various reasons it is difficult to deploy traditional fixed line access. DSL and fiber both dominate the Asian markets while cable is most popular in the Americas. With the US now seeing some results from its government commitment to broadband (see broadbandmap.gov) this may lead to a pick-up in fiber growth. DSL however is likely to become more and more dominant globally due to additions in Asia as the addressable market keeps growing. The Broadband Forum in 2011 Building on such a solid year of growth and achievement in 2010, there are a number of major areas of activity for the Broadband Forum in 2011. The Forum will continue to add to its IPv6 Toolkit, expand its TR-069 CPE WAN Management Protocol and associated data models, develop PON solutions and test suites to support the growing fiber market requirements, as well as continue work around mobile backhaul and enterprise support. A strategic focus of 2011 is to develop the reference model for the next generation multi-service architecture and to ensure that the industry has the tools needed to address the requirements and opportunities that will come with Fixed Mobile Convergence (FMC). Our BroadbandSuite 4.0 is set to become the definitive work on IPv6, ensuring that the industry can address the exponentially growing device and smart gateway requirements of next generation broadband, said Kevin Foster, Broadband Forum President. As broadband continues to reach new corners of the world, we will do all we can to ensure Providers are equipped with all the tools necessary to succeed.

For further information about the Broadband Forum or to access the latest free white papers and technical reports, visit www.broadband-forum.org. - ENDS For further information please contact Brian Dolby on +44 (0) 7899 914168 or brian.dolby@proactive-pr.com or Sheila Lashford on +44 (0) 1827 830247 or +44 (0) 7986 514240 or by email to sheila.lashford@proactive-pr.com About the Broadband Forum Broadband Forum, a non-profit industry organization, is focused on engineering smarter and faster broadband connections. Our work defines best practices for global networks, enables service and content delivery, establishes technology migration strategies, engineers critical device & service management tools, and is key to redefining broadband. Our technical reports and free white papers can be found at www.broadband-forum.org