China heads for broadband world leadership

The Chinese broadband market is going to be bigger than any other in less than a year says Ovum

China is set to become the world's biggest digester of broadband by 2007, having enjoyed annual growth of almost 80 per cent in the last three years, according to research.

Just a few months from now, the country will outpace US uptake of the technology and overtake usage in the rest of the world, claims analyst Ovum.

And it won't stop there, according to the analyst, who believes China still lags behind many of its Asia-Pacific peers when it comes to broadband penetration.

It says broadband's favour will continue to take hold and grow by a compound annual growth rate (CAGR) of 75 per cent to top 139 million subscribers in China by 2010.

"We believe China's broadband development will continue to benefit from a booming economy, growing incomes, expanding PC penetration and new applications such as VoIP and IPTV," said Kevin Lee, a senior Ovum analyst based in Hong Kong.

While Ovum is predicting a bright and prosperous outlook for China's broadband future, it warned that there are still some uncertainties ahead.

"China needs to restructure the telecoms industry and it needs to reform the regulatory policy for broadband and IPTV," added Lee.

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