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Broadband Components Will Grow To $10.8 Billion By 2008: Study

Broadband component deployments for broadband-to-the-premises will grow by 13% annually, from $5.9 billion in 2003 to $10.8 billion in 2008, according to a new study by ElectroniCast Corporation. The study also found that North America will be the world leader in growth.

According to EclectroniCast's Broadband-To-The-Premise Global Market Forecast, North America will lead the world in growth, having recovered from the shallow recession of 2003. Its share of broadband component consumption for both residential and business subscribers is expected to expand at an annual rate of 15% up to 2008. That growth rate will level off, though remaining in the double digits at 11% between 2008 and 2011.

Much of the growth has been driven by the demand for residential broadband interface equipment. ElectroniCast expects continued but moderate growth in this market, from $3.21 billion in 2003 to $8.04 billion in 2013 as per-port prices fall.

ElectroniCast founder and chairman Jeff D. Montgomery notes that, despite the recent recession, the broadband business has continued to grow at a phenomenal rate. "The global information transmission, measured in gigabits [by] kilometers, had expanded exponentially over the 1999-2003 span," he said in a statement. "Although this expansion slowed somewhat 2001-2003, in North America and Europe by recessionary impact, this was partially offset on a global basis by government-funded broadband initiatives in Japan, China and Korea."