IDC Forecasts Worldwide Broadband Subscriptions To Nearly Double in Five Years

FRAMINGHAM, MA – JUNE 12, 2006 – The days of dial-up are diminishing rapidly as demand for faster Internet access explodes. According to IDC, worldwide broadband subscriptions will nearly double in five years, expanding from a little more than 205 million in 2005 to nearly 400 million in 2010. Increased end-user choice, monthly price cuts, and the proliferation of broadband-enabled applications and services are a few of the factors driving broadband growth.

"Consumer demand for broadband remains strong, with three out of four global online households connecting to the Internet via broadband in 2010," said Amy Harris Lind, program manager, Consumer Broadband Markets. "However, as competition intensifies and new subscriber growth begins to lag, providers will need to focus on bundling, tiering, and promoting applications that take advantage of broadband's faster speeds to differentiate their broadband offerings, increase average revenue per user, and reduce customer churn."

Key findings of the study include:

— Worldwide broadband services revenue will reach $122.4 billion in 2010

— DSL remains the leading installed broadband technology globally, accounting for 67% of subscriptions in 2010

— In 2005, broadband finally surpassed narrowband as the primary method online households utilized to connect to the Internet

IDC's study, Worldwide Broadband Services 2006-2010 Forecast (IDC #201704), analyzes the global broadband services market, assessing key drivers and inhibitors and quantifying the market opportunity in the coming five years by major geographic region, broadband technology, and end-user segment.

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IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

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