February 28, 2006

European Broadband Market: Half Full Or Half Empty?

At First Sight, Broadband Promises Growth, But A Closer Look Shows Differently

by Lars Godell

with Michelle de Lussanet, Lizet Menke

Executive Summary (This is a document excerpt)

Twenty-six percent of EU-5 consumers now have broadband at home. In the next couple of years, European broadband will continue to grow at a healthy pace thanks to the large installed base of dial-up users. However, from a demand-side perspective, high broadband growth rates are not sustainable. A key long-term broadband growth challenge remains shifting the PC adoption rates upward, and in countries like France, there are few dial-up users left to convert to broadband. Nearly 60% of European dial-up users haven't converted to broadband because they see no need for it and they find it too expensive. And 64% of EU-5 dial-up users don't know when they will migrate to broadband.

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