Chinese broadband to be biggest in the world by 2007

Massive uptake over this year will power country to pole position, Ovum says

The Chinese broadband market will become the biggest in the world by 2007, according to analyst Ovum.

The country will overtake the US and then accelerate to 139 million subscribers by 2010, the research firm says.

China’s broadband development will continue to benefit from a large number of push factors, says Ovum senior analyst Kevin Lee.

'A booming economy, growing incomes, expanding PC penetration and new applications such as VoIP and IPTV will all contribute,' he said.

'The Olympics will provide another boost.'

Broadband in China has so far had trouble growing, in spite of its 128 million cable TV service subscribers.

Voice over IP will be particularly important for pushing the growth of wireless broadband, which is giving operators new hope for seeing returns on their wireless local area networks.

Lee believes prospects for further broadband development in China are bright, but significant uncertainties remain.

'China needs to restructure the telecoms industry and it needs to reform the regulatory policy for broadband and IPTV,' he said.

'The possible entry of foreign players in line with WTO commitments could also complicate the development of the competitive situation.'

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