The number of global internet users registered tremendous growth due to digital transformation through new technologies. Despite the rapid increase in the number of smartphone users globally, fixed-line connections for internet usage remain popular among users.
Fixed-line subscriber base increased 9% in 2021. The COVID-19 pandemic restrictions led to people working from home, which increased the demand for residential broadband services. Partial recovery in businesses since the outbreak of the pandemic also aided the increase in the number of subscribers.
Betwwen 2018 and 2021, the internet subscriber base in Asia-Pacific (APAC) grew at a CAGR of 9.66%, which highlights the consistent increase in the subscriber base in the region. Similarly, the internet subscriber base in the Middle East and Africa region grew at a CAGR of 8.27% during this period.
Asia-Pacific accounted for 60% of the global fixed-line subscriber base. In the Asia-Pacific region, China alone accounted for 45% of the global fixed-line connections. This indicates the digital literacy among the masses, mostly led by growth in online businesses, lower cost of fixed-line connection, and technological advancements. The major companies that dominate the Chinese internet market include China Mobile Communication Group and China Telecom Corporation Ltd. Japan came second, accounting for 6% of the regional fixed-line broadband subscriber base owing to the lower cost of owning a fixed broadband service in comparison to other markets in the region. Strong demand from the digital entertainment segment also led to an increase in the consumption of the internet among users in Japan.
Europe accounted for 20% of the global fixed-line connection base. The growth in the region comes from Germany and France, which account for 3% and 2%, respectively, of the global subscriber base for fixed-line connections. The region witnessed the development of the fixed-line network, bringing more users into the connectivity zone.
North America, and South and Central America accounted for 10% and 8%, respectively, of the global fixed-line broadband subscriber base. The region witnessed higher demand from households for fixed-line internet connections as the pandemic forced people stay indoors. Moreover, leading telecom companies such as AT&T and Verizon raised their capital expenditure on revamping the fiber networks, which enabled more users to get connected to the fixed-line network.
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