What is Broadband?

The term "broadband" is derived from a shortening of "broad bandwidth networking". Broadband networks enable larger volumes of data to be transmitted at higher speeds than previously possible over narrow band networks. Demand for broadband consumer networks, sometimes referred to as "access networks", has been driven by increased consumer demand for faster access to the Internet and for more sophisticated telecommunications services such as multiple telephone lines, interactive television and video on demand. In order to meet consumer demand and accommodate the volumes of data involved with offering these services, the network operators have been forced to build new broadband networks.

What is the Asian Opportunity?

While the broadband services market has been through a very tough period over the last two years, analysts are now predicting that the consumer demand for broadband access and services will begin to expand rapidly from 2002 (Broadband Access Provisioning, Datamonitor 2001). This is particularly evident in the North Asian market where the rapid take up of broadband connectivity and services has been seen in South Korea and Japan. South Korea now has a world leading broadband penetration, the number of broadband subscribers in the country grew by 58.7 percent from 4.1 million subscribers in 2000 to 6.5 million in 2001, (source: Frost & Sullivan). Alongside South Korea and Japan, Taiwan is predicted to be the next big market for broadband services. There are currently over 1.5 million broadband subscribers in Taiwan, which represent approximately 20% penetration, however Pyramid Research believe that broadband connectivity will be in over 76% of households by 2006. The waking giant of the region is China, with a huge population it still remains a relatively untapped market. The Yankee research company predicts that China will ultimately lead the rise in broadband users with the Chinese broadband market increasing from 323,400 subscribers in 2001, to an expected 19.2 million subscribers by year-end 2006. China's planned broadband investment alone over the next five years may reach $24 billion of which transmission systems will account for $15 billion, access networks $6 billion, and data communications hardware $3 billion. It is the enormous potential of the North Asian region that Accelera Capital plans to exploit by supporting both Muse and Dbas with their initial plans to break into this market.