Research firm, Ovum, expects China to continue to dominate the global optical fibre broadband market throughout 2011 and beyond.
Ovum’s new report, titled FTTx Market Review: China’s Dominance, bases this observation on the large predicted growth in subscribers in the country. It is expected to reach 100 million in 2016 - more than 50 per cent of the world’s subscribers.
“A key driver of the enormous forecasted growth is the bandwidth and subscriber targets set by the Chinese government and service providers,” Ovum principal analyst and co-author of the report, Julie Kunstler, said.
“In addition, the government is providing support for deployments in the form of credit and partnerships.”
The strength of local vendors was also highlighted in the report as another key factor contributing to the growth of FTTx.
“They have strong expertise in FTTx, given their large home market, and they will continue to be a formidable force around the globe,” Kunstler said.
“There will continue to be room for other players, but it will be difficult to unseat the top two.”
The report highlights that Huawei and ZTE are also strong exporters outside of China, with 50 per cent of FTTx equipment revenues in Europe, the Middle East, and Africa in the fourth quarter of 2010 traced back to these two vendors.