DSL and cable to offer 20Mbps broadband

The battle for broadband access into the home is heating up as higher bandwidth chip developments enable service providers to offer 'triple-play' voice, data and video services running at speeds of up to 20Mbps.

Analyst firm IDC predicts that the addition of VoIP and high-definition video services will remain a top priority for many carriers and cable providers worldwide.

Increased competition from large mobile carriers and specialised VoIP and IP video service providers, coupled with the desire to increase annual revenues per user, will drive further equipment replacement and expansion.

"The ability to support faster speeds over 20Mbps, improved quality of service features, and increased security will fuel demand for a new breed of chip products that will be at the heart of next-generation broadband designs," said Sean Lavey, a programme manager in IDC's semiconductor research group.

He added that more highly integrated copper-based DSL and cable modem chips, along with lower cost and more standardised fibre-based and optical modules, will drive broadband equipment upgrades.

IDC predicts that the adoption of higher-speed ADSL2+ technology for DSL will continue to drive most carriers' new deployments, while the upcoming VDSL2 standard will drive healthy upgrades in shorter copper loop environments.

For cable modems, IDC expects that manufacturers will continue aggressively to add VoIP capability within their designs to help them compete with faster next-generation DSL products.

Although broadband technology has started to reach subscriber saturation points in some well-established markets, IDC noted that emerging countries such as China and India are still showing "significant upside opportunities".