Cable Modem Market in China: High Growth, Low Volume: Industry Research Report

Cable Modem Market in China: High Growth, Low Volume

Published Date: January 2008

Published By: In-Stat

Page Count: 20

Order Code: R97-3052

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Cable modem service is an important part of the triple-play strategy set out by Chinese cable operators. In addition, broadband data service is viewed as an important revenue booster and competition counter-measure against telecom operators' invasion into video service. However, as digital cable conversion has had most of the resources available to cable operators tied up, CMTS deployment and cable modem service are currently only available in a handful of locations. In-Stat believes that cable modem service will become a long-term revenue driver for most cable operators, but that large-scale deployment is still two or three years away.

The cable broadband access market in China is growing at a steady pace. In-Stat estimates that there were 2.69 million cable broadband subscribers in 2007. This number will grow to 8.16 million by the end of 2012, a CAGR of 24.9%. However, cable broadband’s share of the entire broadband access market will remain moderate at around 6% throughout the five-year forecast period.

In-Stat believes that, compared to the rest of the broadband access market, penetration for the cable modem market will remain moderate. Its market share will grow from 4% in 2007 to 6% in 2012. We also forecast that xDSL technology will still dominate the market in 2012.

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