Lee said DSL dominates with a growing market share of 71 percent and 32 million subscribers by June 2006.

It is followed by Ethernet-based LAN access in high-density areas, which has a substantial market share of 26 percent.

"DSL technology will be the key force for broadband growth; operators are progressively upgrading the network using higher speed technology such as ADSL2+ and VDSL to meet increasing bandwidth demands," Lee said, adding that cable modem, wireless technologies and others will make a much smaller contribution.

DSL speed and prices vary widely across China and between the two main DSL providers. Broadband prices (where China Telecom offers higher rates) are normally highest in major cities, but are more affordable in second- and third-tier cities.

Despite widespread cable coverage and 128 million cable TV service subscribers in China, Lee said cable operators have made few inroads into the growing broadband market.