The upturn largely reflected China's booming economy which saw broadband connections growing to a phenomenal 11 million in 2003 from 3.4 million in 2002, said Gartner.

It estimated that regional revenues from providing Internet access would rise to at least 14.3 billion dollars in four years' time,

"Internet access revenues will remain one of the healthiest areas for fixed-line telecoms in the region," said Andrew Chetham, Gartner's regional principal analyst.

"There are still many countries where Internet penetration is low while other countries like Australia and Malaysia are beginning to see broadband growth pick up, which will boost revenues," he said.

Chetham said the figures showed Internet and broadband access revenues were quickly becoming an important source of income for fixed-line telecom service providers faced with declining sales in the voice business segment.

He cited Korea Telecom (KT) as a successful case study. The company was able to ride on the Internet boom to become a leading player in the industry with 20 percent of its total sales now coming from the segment.

"KT was only a minor player in the South Korean Internet scene five years ago," said Chetham.

"This not only illustrates a dramatic and sudden shift in KT's business, brought on by rapid broadband rollout, it also highlights why other carriers increasingly want to grab a larger share of the Internet access market from independent ISPs (Internet service providers)," he said.

SPACE.WIRE