Study: Europeans to flock to high-speed Net access
dailynews.yahoo.com
Wednesday August 02 08:00 PM EDT
By Corey Grice, CNET News.com
European consumers are expected to catch the broadband bug during the
next five years as networks expand and prices fall, according to a new
study.
The report, released yesterday by market research firm Forrester Research,
shows that 18 percent of European households--or 27 million people--will
subscribe to a high-speed, or "broadband," Internet access service by 2005, up
from less than 1 percent last year.
Limited availability and high prices have hampered broadband growth
overseas. For example, less than 8 percent of European households could
receive high-speed Net service last year.
However, deregulation and increasing competition will soon spark network expansion, lower prices, and
more applications and Web content specifically designed for broadband connections, Forrester predicted.
Denmark, Norway and Sweden are expected to lead the way, with about 36 percent to 40 percent of
households subscribing to a high-speed Net service within five years.
The study showed that digital subscriber lines (DSL) will top the market, with a 53 percent share. Cable
modem services are expected to take 27 percent of the market, while other services, such as fixed wireless,
satellites and fiber optics, will garner the remaining 20 percent.
Forrester also believes that the largest telecommunications companies, such as Deutsche Telekom, will
dominate the market over smaller cable operators, Internet service providers and "pure play" broadband
companies because they have the scale to invest in their networks, attract content partners and bundle
services.
In the United States, broadband Net adoption has grown as telephone companies and other high-speed
service providers trim prices and introduce expanded services. In addition to less expensive services, many
broadband providers in the United States have stepped up their marketing efforts.
Widespread adoption of high-speed Net services are still hampered, however, by the speed at which
companies can install the technology, as well as by geographical limitations, such as DSL distance limits.
All the best,
Michael |
