New players could shake up the broadband market, which is set to make $75bn (£40bn) in worldwide total revenues this year, industry analysts believe.
The growing broadband market is set to top $145bn in revenues by 2010, attracting new players from different industries seeking a piece of the pie, a new report from analyst firm Arthur D Little says.
The report, Next Generation Networks in Europe - Broadband in 2011 and Beyond, argues that although broadband providers now compete over speed and price, this will change as bandwidth becomes a commodity and service bundling will be the main driver of growth.
Today’s major telecommunications providers are likely to face sharp competition from internet firms such as Yahoo, MSN, Google and Apple acting as content aggregators and service providers, the report says.
Operators will compete to provide more flexible packages for users, with integrated fixed and mobile services. Arthur D Little believes this competition will spark further infrastructure investments into next generation networks as well as squeezing prices.
Michael Natusch of Arthur D Little said, “We believe that the market will converge and consolidate. The growth in broadband subscribers has been impressive and is expected to show double-digit growth in important global markets.”