Today’s Broadband Offers Have Limited Appeal, Says EC
High Prices, Viruses and Lack of Interest Restrict Growth
by Iain Morris | Tues, August 29. 2006
[FAC: Assuming the survey results that are reported in this article are accurate (which I have some reservations about, even if only the way I perceive their shelf life), it says to me that users, by a margin of almost two to one over those who cite costs, must be spoon fed, Or worse, they must be sausage stuffed. It's not sufficient, in other words, to build a window to the universe, because no one will look through it without being prodded or unduly lulled. What do you think? I think, instead, that most who used the content excuse were just too far into their own denial to admit that they didn't want to pay the premium. Jochen Jansen? What do you think?]
One of the most publicized telecom trends of the last few months has been the race for the broadband customer. Operators throughout Europe have been slashing prices and bundling services in a bid to boost market share.
But unless costs fall further and offerings become more attractive many potential customers will never be enticed by broadband, says a new E-Communications Household Survey published by the European Commission (EC).
According to the survey, 40 percent of households with narrowband access do not wish to upgrade to broadband because they are either satisfied with dial-up speeds or do not believe they use the internet enough, while 22 percent reported that cost was a barrier to adoption.
“[This is] a challenge to operators and service providers to develop more attractive broadband offers both in terms of content and in terms of price, and I will do my part to ensure that enhance competition will promote such a development,” says Viviane Reding, Information Society and Media Commissioner at the EC.
Perhaps even more worrying for operators are details of the finding that 60 percent of EU households have no Internet access whatsoever. When questioned why, 43 percent reported a lack of interest, 27 percent claimed they had no PC or means of connection and 19 percent said that Internet access was too expensive for them.
Spam may also be a deterrent. Approximately 17 percent of households said that receiving spam or viruses on their PCs had discouraged them from using the Internet, and one half of households with Internet access said they would consider switching their provider if spam or viruses continued to be troublesome.
With just 16 percent of EU households now on narrowband connections – compared with 23 percent on broadband – the market for new customers is looking decidedly small unless operators do something radically different.
A finding that might provide some cheer for operators regards the frequency of Internet use. The survey results indicate that only a very small proportion of households with Internet access use it less than once a week, while in most countries between 60 percent and 80 percent use it every day.
What’s more, service bundles look set to prosper. Around 18 percent of EU households have subscribed to such packages, with combinations of fixed telephony and Internet access proving the most popular of the available options.
The survey was conducted on a representative sample of 25,000 EU households between December 7, 2005 and January 11, 2006. |
