IDC Asia Pacific expects the number of broadband subscribers in Singapore to swell to 1.3 million by 2005, from the current 79,000.
IDC defines broadband subscribers as those using digital subscriber lines (DSL) and cable modems.
DSL technology transforms a traditional phone line into a high-speed digital link to provide homes and small businesses with broadband Internet access.
Cable modem connections use either a stand-alone device or one included in a set-top box to send and receive data over a Hybrid Fiber Coaxial (HFC) cable network.
The increase will be fuelled by the push by the government to adopt new technologies and the incumbent telcos, who believe in offering world-class services, will upgrade their networks to provide new value-added services (including broadband), said IDC Asia Pacific senior analyst (data communications) Simon Chew said.
Chew observed that there is tremendous opportunity for the local broadband market from existing narrowband subscribers. There's nothing to stop ISPs from offering these customers attractive packages to switch, he added.
He was speaking at the sidelines of an IDC talk entitled The Evolution of Broadband in Asia Pacific.
Meanwhile, IDC also expects the number of broadband users in Singapore to hit 250,000 by year end.
According to IDC Asia Pacific senior analyst (telecommunications research) Grace Yeo, it expects DSL subscribers here to reach about 123,000 by year end, compared with 41,000 subscribers in December 2000.
As for cable modems, IDC foresees the subscriber base in Singapore growing to 127,000 by year end from 38,000 in 2000.
Yeo added that by 2005, the research house expects a compound annual growth rate for DSL and cable modem subscribers to be about 77 percent and 71 percent respectively.
"With increased competition, we can expect to see broadband service providers being more aggressive in their marketing strategies in terms of educating end users," she said. "On pricing, we have seen new service pricing schemes being launched, which would speed up the deployment of broadband access in Singapore."
Price war?
The competition in the local broadband industry is heating up, with predictions of a price war.
Last month, Nasdaq-listed regional Internet service provider Pacific Internet (PI) introduced Broadband Unlimited, a new Asymmetric Digital Subscriber Line (ADSL) access plan that provides toll-free, unrestricted broadband access of up to 512kbps.
Meanwhile, Yeo said IDC is projecting 10.8 million broadband subscribers in Asia Pacific (excluding Japan) by year end. This figure is expected to rise to 41.3 million subscribers by 2005, she noted.
"In countries like China and India, there is huge market potential for cable modems because of the extensive cable TV network already present in the two countries," Chew said.
He singled out Korea, with its huge broadband subscriber base, as a major contributor to the region. Korea is expected to have 18 million broadband subscribers in 2005 from three million currently.
