Over 15% of Households Worldwide To Have a Broadband Connection by 2008, Forecasts ABI

The desire to acquire more subscribers will spearhead the bundling and inter-reliance of "boxes" with any one or more of the triple play services in more creative ways, leading to attractive price points and inventive services.

Contact: Jake Wengroff

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Over 15% of Households Worldwide To Have a Broadband Connection by 2008, Forecasts ABI

- -While Cable Broadband Leads in the U.S., DSL More Prevalent in Rest of World - -

OYSTER BAY, N.Y. - - November 13, 2003 - - The need for secure, speedy, and on -demand video, voice, and data - the "triple play" - has propelled cable MSOs (multiple service operators), telcos, and the CE (consumer electronics) industry to develop and distribute the means to transmit this information to users worldwide. Technology research firm ABI forecasts that by 2008, over 15% of households worldwide will have some type of high -speed broadband connection, with the highest share coming from North America and the second highest share from Western Europe, followed by Asia -Pacific and the rest of the world. ABI has also found that while cable broadband is leading in the U.S., worldwide DSL (digital subscriber line) market share as of 2002 is around 60%, whereas cable broadband holds about 40% of the market.

But the desire to acquire more subscribers - while retaining existing ones - will spearhead the bundling and inter -reliance of "boxes" with any one or more of the triple play services in more creative ways over the next few years, leading to attractive price points and inventive services.

In the past, cable MSOs and CE vendors have had a disconnect in the way that they offered their services and products to the consumer. "There always existed the 'chicken or the egg' arguments," explains Vamsi Sistla, ABI's Director of Broadband Research, "as to whether consumers should buy the products first based on the product's standalone features, or should the products be developed first and be made available for subscription to one or more of the triple play services. Now, the unlikely bedfellows are seeing one another as necessary for survival."

Some trends include:
While worldwide digital cable households made up less than 9% of the cable households in 2002, this share will grow continuously to reach just over 20% by 2008. However, this will represent only 7% of all the worldwide households as of 2008. The DBS (digital broadcast satellite) share of worldwide households will be over 12% in the year 2008.
Video -over -DSL will be the new kid on the block, with U.S. ILECs (incumbent local exchange carriers) and CLECs (competitive local exchange carriers) charging ahead with aggressive deployments to fend off cable's triple play offering. Even with higher growth rates, North American household video -over -DSL penetration rates will be trailing those of the Asia -Pacific region by 2 million, in the year 2008.

Such data and market trends are available through ABI's Broadband Quarterly Service (BSUB), which offers both moderate and aggressive market forecasts for the broadband competitors, by region and technology through 2008. Markets forecasted include CATV, digital cable, DBS, cable broadband, DSL, cable telephony, video -over -DSL, and wireless.

Coverage of digital STB (set -top box), digital satellite receiver, and IP STB shipments is available through ABI's Digital Set -Top Box Quarterly Service (STBS). The information service provides timely data on the market for advanced digital set -top boxes used in CATV, DBS, and video -over -DSL markets. This service examines the global trends in shipments, revenues, and penetration of advanced features for various distribution networks, including digital cable, DBS, terrestrial, and DSL and IP -based networks.

ABI's Residential Entertainment Technologies Quarterly Service (RETS) offers the latest market forecasts for different display technologies including liquid crystal display, plasma and digital light projector, as well as for other digital devices such as DVD players -recorders, digital audio products, personal video recorders, game consoles, and wireless and network -enabled digital products. RETS provides detailed market segmentation coupled with insightful analysis, and clients are given quarterly updates of the latest trends, news, and vendor announcements.

About ABI
ABI is a N.Y. -based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, networking and energy industries. Details can be found on the web at abiresearch.com or by calling 516 -624 -3113.

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