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Broadband is about price not speed

  • PTI
  • |
  • Updated: Feb 17, 2003 05:53 IST

Reed Electronics Research claims that broadband take-up will increase significantly in Western Europe once cheap entry-level packages are introduced.

According to the company's latest report, broadband adoption could reach 60 percent in urban households by 2007 provided, value for money packages are launched throughout Europe.

It is assumed that broadband is not gaining popularity because of its high cost. The research firm suggests that broadband providers need to introduce some inexpensive and affordable packages costing EUR39 (USD39) or less in order to boost take-up.

Currently, providers are selling using the speed to sell broadband, however, Reed predicts that broadband adoption is a question of economics and therefore consumers will switch over to this technology if prices come down to a reasonable level.

Reed also believes that ADSL and cable are the only two technologies that can satisfy demand at the price point required and that incumbent operators are unbeatable in the short term.

 

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