New information from ABI Research's (News - Alert) Broadband CPE Research Service suggests that cable broadband may be more lucrative than DSL over the next five years, with revenue reaching the $50-billion mark in 2017.
As in many industries, developing economies will play a key role in cable broadband penetration worldwide.
The primary element working in cable's favor is the adoption of DOCSIS 3.0, granting higher maximum speeds than DSL. This key competitive strength has given cable telecommunications companies in the United States, Canada and parts of Western Europe a significant advantage.
"Cable MSOs' marketing focusing on use of advanced services, such as video streaming, and number of devices in the home has encouraged consumers to upgrade to higher bandwidth tiers," Adarsh Krishnan, senior analyst for TV and video at ABI Research, said in a press release.
In order to prepare for more bandwidth-intensive services on the horizon, like 3DTV and 4K video resolution, tech solutions providers are working with cable operators to roll out the next generation of DOCSIS. DOCSIS 3.1, for example, will focus more on upstream channel bonding, allowing for higher upload speeds which are critical for tasks like online gaming.
Meanwhile, cable providers in developing regions are often entering the market sporting the latest cable technologies, often stepping over older protocols. Furthermore, because cable by its nature is capable of providing three services – traditional video and television, broadband Internet and VoIP services using embedded multimedia terminal adapters (EMTA) – cable operators can provide greater value to customers than DSL providers.
In 2011, China accounted for 57 percent of cable subscribers in the Asia-Pacific region with Chinese government investment and the cable digitization initiative promoting cooperation between TV broadcasters, telecom carriers and Internet operators.
ABI Research also recently chimed in on the rise of 'phablets,' large phones that sit somewhere between a phone and a tablet – like the Samsung Galaxy Note – stating that these devices will find a niche market worldwide.
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Edited by Braden Becker