Broadband and Digital TV Will Drive Global Consumer Services

Dramatic growth in broadband and digital TV is projected by analysts at Yankee Group, as they project the global consumer services market to pass the $475 billion mark by 2008.

The forecast demonstrates that global broadband household penetration, 3.4 percent in 2002, will rise to an impressive 16 percent by 2008. Analysts point out that there is great variability of what is deemed "broadband" across the globe -- the average customer in Europe getting 512 Kbps, while in Japan or Korea, 6 Mbps is not unusual. In the United States, where most customers are accessing broadband via cable modem, 1.5 Mbps is the typical speed.

"While it is clear that broadband and digital TV are having the greatest overall impact, it's interesting to note large regional differences in consumer services spending," says Yankee Group's Boyd Peterson.

"Western European spending on calls from fixed-line phones will halve between 2004 and 2008, and will fall greatly in North America as well. Fixed-line call revenue will rise strongly in some important emerging economies such as China and Brazil. It's imperative that service providers, vendors and investors understand both the global picture and local markets to build effective strategies and minimize risk."