The ever-increasing demand for faster Internet service is expected to drive global fixed broadband revenue to $191 billion in 2012, according to a new report from ABI Research (News - Alert). On the current pace, global broadband revenue may exceed $217 billion by 2016.
The report follows a strong 2011 for the fixed broadband market, which saw significant subscriber additions across DSL, cable and optical fiber platforms.
"Fiber broadband adoption has grown rapidly over the past years," says Khin Sandi Lynn, a broadband research analyst at ABI. "Consumers are becoming increasingly reliant on a number of data-intensive services such as high-definition online video services, IPTV (News 
- Alert), and online gaming."
The demand for these bandwidth-hungry services is forcing operators to upgrade their networks and offer higher-speed services like VDSL. The market research firm says that as many as 5 percent of global DSL customers had access to VDSL in 2011. In other cases, operators are completely replacing their existing copper lines with pure optical fiber.
Meanwhile, the aggressive moves by DSL and fiber operators have forced many cable providers to upgrade their own networks to DOCSIS 3.0. ABI points to examples of Comcast and Time Warner (News - Alert), which are each in the process of transitioning their networks to DOCSIS 3.0 to stay on pace with DSL and fiber operators. Overseas, Germany's Kabel Deutschland upgraded its network to DOCSIS 3.0 and is currently offering blazing 100 Mbps service for a little as $26 per month.
In related news, Infonetics Research (News - Alert) recently took an in-depth look at the home automation market, a space that operators like Verizon, AT&T, Comcast, Time Warner Cable and China Telecom (News - Alert) are starting to explore.
Jeff Heynen, directing analyst for broadband access and video at Infonetics, says that while the market is still young, home automation is expected to play a significant role in global operator business models moving forward.
"The potential customer loyalty and incremental revenue attached to home automation services, particularly home security and home energy management, are too enticing for any operator to pass up," he noted.
Infonetics says that fixed-line operators and service providers are positioning themselves as the early adopters of home automation services, but there is "strong evidence" to suggest that mobile operators will soon carve out a role in the market.
Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.
Edited by Rich Steeves
