The global number of broadband subscribers grew 72 per cent in 2002 to approximately 62 million, according to a report from the International Telecommunication Union (ITU).

Home users are driving the vast majority of broadband demand.

"Broadband is arriving at a time when the revolutionary potential of the internet has still to be fully tapped," said Dr Tim Kelly, head of the Strategy and Policy Unit at ITU.

But he added that although broadband is accelerating the integration of the internet into our daily lives, it is not a major industry driver in the same way that mobile phones and the internet were in the 1990s.

"It's an incremental improvement, offering internet access that is faster, more convenient and cheaper than ever before," he said.

The Republic of Korea was found to lead the way in broadband penetration, with approximately 21 broadband subscribers for every 100 inhabitants.

Hong Kong ranks second in the world with nearly 15 broadband subscribers per 100 inhabitants, and Canada ranks third with just over 11 broadband subscribers per 100 inhabitants.

In many markets, increased competition among broadband service providers has also triggered lower prices for consumers, boosting demand and making access more affordable, according to ITU's report, Birth of Broadband.

And the study suggests that broadband access may also help fuel consumer spending.

For businesses, broadband competes very effectively with leased lines. In some markets it can even be up to 111 times cheaper, per megabyte per second, than today's private network options, the study revealed.

"The dotcom boom was driven by the expectation that the internet would create a large market for electronic commerce, on-demand content, and online applications," said Kelly.

"Broadband brings this expectation one step closer to reality by offering faster speeds and a better platform for the development of content services. In other words, the reality is finally starting to catch up with the market hype."