November 29, 2006

Making Broadband Triple Play Profitable: Access Revenues

This is the 15th document in the "Making Broadband Triple Play Profitable" series.

by Lars Godell

with Thomas Mendel, Ph.D., Andrew Parker, Andrea Carini, Daniel Krauss, Lizet Menke

Executive Summary (This is a document excerpt)

Broadband access is the killer app for broadband triple play in Western Europe — in our detailed, bottom-up access revenue model for incumbent telcos in 17 countries, we estimate that access-related revenues currently account for 93% of all residential broadband revenues. Western European broadband access ARPU figures show great diversity — compare €36.55 per month in Norway to €17.60 per month in Finland. Incumbents in Belgium, Greece, Ireland, Luxembourg, and Spain face the highest risk of access ARPU decline over the next 10 years. We expect incumbents to throw in more bandwidth and add more functionality to counter pricing pressures, thereby keeping prices relatively stable. And the ongoing industry consolidation will help reduce this pressure further. As a result, we only expect an average 1.9% annual access ARPU decline, which is below some expectations. The worst-hit incumbents will be firms like Telefónica, with an access ARPU CAGR of -3.5%.

Buy Risk-Free

Download and print PDF immediately. Price: US $499

Our Money-Back Guarantee: If you are not completely satisfied, return it for a full refund within three weeks of your online purchase.

Already a Forrester Client?
Log in to read this document.