Asia-Pacific telcos face broadband challenge

Asia is home to some 40 per cent of the world's broadband internet users

Telecoms service providers in parts of Asia-Pacific are seeking new ways to boost revenue as subscriber growth tails off.

"Growth is slowing in the more mature markets of Australia and Singapore, while Korea and to a lesser extent Taiwan are approaching saturation," said Nathan Burley, an analyst with telecoms consultancy Ovum. 

Asia is home to some 40 per cent of the world's broadband internet users, according to data from researchers at Australian consultancy Paul Budde Communication. 

Revenues earned from each broadband user for the region's incumbent telcos declined by an average of eight per cent from 2005 to 2006, Ovum found.

Asia's traditional internet providers have been slow to expand the average income generated per subscriber by offering attractive value-added services.

"Operators are changing their broadband strategies to counter this saturation," explained Burley.

"They are attempting to up-sell users to higher value plans, introducing more value-added services such as IPTV, video-on-demand and innovative pricing plans. "

However, basic access charges, rather than services, still account for most broadband revenue growth in the region, according to Ovum's research.