Global service revenues from fixed broadband connections climbed by seven per cent year on year in 2012, according to ABI Research.

The technology market intelligence firm revealed that earnings from DSL, cable and fibre optic broadband rose to 8 billion (£120 billion) last year and predicted further growth over the coming years, with service revenue expected to hit 1 billion in 2018.

Fibre broadband saw its strongest ever year-on-year growth in 2012, surging by 24 per cent, while DSL and cable services rose by two and six per cent respectively.

Over the forecast period, ABI believes fibre-based connections will experience the strongest upturn, with fibre-to-the-home revenue set to reach .6 billion - or almost one-third of global broadband service earnings - in 2018.

Despite this predicted increase, average revenue per user has continued to drop in recent years.

Jake Saunders, vice president and practice director of core forecasting at ABI, said: "The trend is expected to endure as the majority of operators are trying to offer lower prices to capture a larger market share."

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