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59% Asia Pacific broadband users are in China

GLOBAL fixed broadband subscribers increased 10 percent year-on-year in the second quarter to hit 449 million, fueled by the growth in the Asia Pacific region, a US-based research firm said today.

Chinese broadband user base accounted for 59 percent of the Asia Pacific region by the end of June. Meanwhile, Internet networks with higher speed are expected to be built in the country, according to ABI Research.

"The key growth in fixed broadband subscribers was found in the Asia-Pacific region, adding approximately 3 million subscribers in the second," said Jason Blackwell, an analyst of ABI Research.

In Europe and the United States, broadband user base grew slowly because of the continued economic uncertainties, industry insiders said.

In the Asia Pacific region, China represented nearly 59 percent of total broadband subscribers in the region. With a 28 percent penetration rate, China's broadband market has still enough room to grow. Chinese operators may need to increase the current average bandwidth which is about 2Mbps (megabits per second), according to ABI research.

China Telecom, which will invest 26 billion yuan within two years in Shanghai, said it aims to establish the city as an "Asian telecommunications hub."

By 2012, Shanghai Telecom plans to speed up residential broadband access tenfold to 20 megabits per second, 5 to 10 times higher than the current speed. It will also expand overseas Internet bandwidth through the undersea cable, the country's biggest fixed-line phone carrier said.

Chinese broadband operators are gearing up to expand FTTx (a kind of optical fiber) that would help raise penetration as well as speed. The country's optical fiber broadband subscribers will amount to 34 million at the end of 2015 with an annual growth rate of 26.6 percent between 2010 and 2015, according to ABI Research.
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