Recently, Omdia's latest report shows that the number of connected households with a network speed of 1Gbps and above will nearly triple between 2021 and 2023, from 63 million in 2021 to 169 million in 2023. Gigabit broadband has become the mainstream choice for consumers in advanced broadband markets.
Omdia pointed out that consumers' reliance on digital applications (intensified during the new crown epidemic) has not diminished-as consumers accelerate their use of online video services and video calls, consumer behavior has completely changed in the long run. Additionally, consumers have become accustomed to receiving reliable, stable broadband service, which is now driving demand for gigabit services. The metaverse and the further popularization of AR/VR applications among the general public will change consumers' habits. These applications require excellent broadband quality and low-latency connections to function properly and perform as expected.
• Gigabit broadband is now mainstream in the advanced broadband market. Consumer gigabit broadband subscriptions will nearly triple between 2021-2023 as consumers have become accustomed to expecting fast, reliable, high-quality, and low-latency connectivity services. However, operators need to carefully consider market requirements when formulating gigabit strategies, paying attention to quality of experience (QoE) as well as speed.
• Fiber optic network goes further into customer premises. An all-fiber network is definitely the preferred Gigabit access technology. In order to take full advantage of the advantages of fiber optic connections in terms of high speed and low latency/jitter, operators in advanced markets are exploring ways to bring fiber optic networks to every corner of the home, offering solutions such as fiber-to-the-room (FTTR).
• However, access to gigabit broadband remains the prerogative of developed countries. By 2023, only 54% of households globally will have a fixed broadband connection at home, and only 7% will enjoy gigabit broadband speeds. Most gigabit connected homes are concentrated in North America, Western Europe and Oceania, East & Southeast Asia.
Advice to Telecom Operators
• Investing in Gigabit connectivity requires careful planning. Operators need to carefully plan and execute gigabit network deployment, and analyze a series of factors such as infrastructure challenges, market competition, and expected demand. This is not limited to network rollout - operators need to continuously monitor competitors and innovate services to stay ahead of competitors.
• Put QoE at the heart of your customer acquisition/retention strategy. Consumers continue to rely on broadband connections for work, education and entertainment. High-speed fiber optic networks need to be complemented with smart home broadband solutions such as smart Wi-Fi and real-time traffic monitoring, so that connectivity bottlenecks in the home can be resolved. It's not enough to market around high speed; it's more important for consumers to emphasize QoE, reliability and Wi-Fi performance.
• Provide consumers with choice and flexibility around bundled gigabit services. Operators should move away from the traditional concept of bundling (and a fixed range of services or no service) and allow users to add features and services on top of gigabit broadband based on their needs, interests and economics. Giving consumers this flexibility is especially important given the ongoing inflation and cost-of-living crisis.
Advice to Manufacturers(SOFTEL)
• Vendors need to provide flexible solutions for Gigabit connectivity deployments. Operators are expected to invest heavily in gigabit networks in 2023 and need a compelling business case. Vendors should provide flexible solutions, guidance and expertise (such as mapping/planning tools and AI capabilities) to assist in network planning and deployment, helping operators maximize their return on investment.
• Ensuring quality of experience requires an end-to-end solution. As the trend of people paying more attention to service quality continues until 2023, operators need to guarantee service quality. Vendors can help operators achieve this by providing comprehensive solutions—from network backbones to connected home hardware, performance monitoring, and AI products—to help ensure optimal network performance.
• Fiber optic networks need to be future-proof. Carriers are investing heavily in fiber rollouts to deliver gigabit services; they need to ensure that these networks will perform to their full potential for many years to come. Vendors can provide long-term solutions (such as monitoring and automation tools), thereby expanding the relationship with operators (beyond the scope of network deployment).
