2022.07.01 – Open Broadband News

Global fixed broadband subscriber numbers continue to grow, reaching 1.27bn

Fixed broadband plays a vital role, helping people to connect all around the world and its significance continues to flourish. According to Point Topic’s Global Broadband Statistics, the number of fixed broadband subscribers grew by 1.5% during the final quarter of 2021. The growth rate was lower than in the respective quarter of 2020 that grew by 1.7% but the overall number of connections climbed, reaching 1.27 billion.

Fiber-To-The-Home/Building (FTTH/B) claimed 62.5% of the share of subscriptions as it continues to grow in developing broadband markets. Fiber connections have increased by 13.6% since the end of 2020, gaining market shares from both cable and copper connections. Unsurprisingly, China has the most FTTH/B broadband net additions. The country gained 8.9 million new fiber connections in Q4 of 2021, exceeding half a billion fixed broadband subscribers.

Although the number of emerging 5G connections is growing drastically, fixed broadband gained a large sum of connections in Q4 of 2021 and continues to display its importance in keeping people connected worldwide. To read the full blog post by Oliver Johnson, CEO at Point Topic, click here.

Degree of concentration impacts adoption of fixed broadband in homes in the Ibero-American region  

Figures from the Ibero-American Telecommunications Organization (OTI) show that, as of the third quarter of 2021 (Q3-2021), the Ibero-American region recorded an aggregate of 120.2 million accesses to fixed broadband. This was equivalent to an average of 54% adoption of the service among households in the countries within the region.

Countries such as Uruguay (90%), Spain (87%), Brazil (76%), Argentina (76%), Panama (75%), Costa Rica (72%), Mexico (68%), Portugal (67%), stand out positively. The likes of Chile (64%) and Colombia (61%), according to the Ibero-American Telecommunications Organization analysis, also exceeded the average level of access in the region.

It does not go unnoticed by the Ibero-American Telecommunications Organization that, economic competition is an essential element to guarantee the provision of an essential service, such as that of fixed broadband.

There is evidence that supports that those countries in which a more concentrated market structure is identified, with a smaller number of competing operators or those that have an operator with a high market share, tend to present adverse conditions for access to fixed broadband.

Broadband Access: A firewall to COVID

A new study from Tufts University’s Digital Planet initiative found a correlation between broadband and Covid-19 death rates, highlighting a particular link between greater access and better outcomes in urban areas. The report comes after researchers at the University of Chicago released a paper earlier this year that came to a similar conclusion.

Researchers found that even after controlling for a range of factors including age, gender, healthcare access, poverty, and racism, a 1% increase in broadband access reduced Covid death rates by approximately 19 people per 100,000 in the U.S. Put another way, a 1% increase in broadband access led to a 0.1% decline in Covid mortality overall. The impact of broadband was especially pronounced in metro areas.

“We believe this finding suggests that more awareness is needed about the essential asset of technological access to reliable information, remote work, schooling opportunities, resource purchasing, and/or social community,” said the authors of the University of Chicago study.

US homes benefit from fixed broadband competition

Findings from a study of the US broadband market by trade body ACA Connects, which represents smaller and medium-sized, independent triple-play companies, suggest the vast majority of Americans now enjoy the fruits of robust broadband competition, and the competitive market will further expand and intensify in the next several years.

“After decades of investment by multiple fixed broadband providers in every local market – amounting to well over $1 trillion during that time – the vast majority of American consumers now have a choice of broadband providers offering robust, reliable, fixed broadband service. And the reach and intensity of competition will only increase as broadband providers continue to invest many tens of billions of dollars annually,” said ACA Connects President and CEO Grant Spellmeyer.

The study demonstrates that a substantial majority of US households have a choice of fixed broadband providers today. It reveals that more than 90 percent of households have access to at least one broadband provider offering 100/20+ service and at least one additional provider offering 25/3+ service.