The global broadband market experienced a slowdown in growth during the fourth quarter of 2024, influenced by factors such as high mobile subscriber penetration, market saturation, economic challenges, and geopolitical tensions, according to a report by Point Topic.
Subscriber Growth Analysis
As of Q4 2024, the total number of fixed broadband connections worldwide reached 1.5 billion, marking a quarterly growth rate of 0.91%. This figure reflects a decrease from the 1.44% growth reported in the previous quarter. Notably, 14 countries experienced a decline in subscriptions, an increase from 13 in the third quarter.
The growth rate for fixed broadband subscribers in Q4 2024 was the second lowest seen in the last two years, although it was slightly higher than the growth recorded in the same quarter of 2023. The overall trend indicates a continuing slowdown in broadband growth as penetration rates rise, with significant disparities in growth rates across different regions.
Regional Performance
India showed remarkable performance, boasting a quarterly growth rate of 5.27%, which underscores its substantial growth potential due to low penetration rates and a rapidly expanding economy. Out of the largest 20 fixed broadband markets, all except Italy recorded growth in Q4 2024. The average growth among these markets was 1.12%, compared to 1.25% in the previous quarter. Italy saw a churn rate of 2.3%, driven by a drop of 600,000 connections in copper broadband, despite gains in fiber.
In terms of regional shares, South and East Asia held the largest proportion of global fixed broadband subscribers at 50.99%. However, growth in this region slowed, particularly in China, where the quarterly rate fell from 1.75% to 0.6%. As a result, the region’s net subscriber additions share dropped from 68.17% to 54.62%. Latin America also experienced a decline in net additions, falling from 13.11% to 8.79%, primarily due to slower growth in Brazil, Argentina, and Mexico.
In contrast, North America showed strong performance with a growth of 11.53% in Q4 2024, up from 4.63% in the previous quarter. Both the US and Canada reported significant increases in broadband connections, particularly in satellite and fixed wireless access (FWA) technologies.
Technology Trends
The report emphasized the continued rise of fiber-to-the-home/business (FTTH/B) connections, which now comprise 71.49% of all fixed broadband subscriptions. Year-on-year FTTH/B connections increased by 7.4%, while market shares for cable, copper (ADSL), and FTTx technologies decreased. Countries like Egypt, Venezuela, the UK, Greece, and Algeria saw double-digit subscriber growth in FTTH/B where there are over 500,000 fiber connections.
Satellite and FWA technologies also witnessed significant annual growth rates of 52.5% and 27.3%, respectively, largely driven by advancements from providers like Starlink. By the end of 2024, Starlink reached approximately 4.6 million subscribers globally, with the US being the largest market having over two million users. Other major markets include Canada, Brazil, Australia, and Mexico, where traditional broadband services are limited due to vast geographic areas. However, political challenges in Canada may pose risks for future expansions.