Broadband adoption on the rise in Europe

Published on Mar 25, 2003 04:32 PM IST

The world may slowly be turning broadband-friendly.

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HT Image

Datamonitor's recent reports indicate positive changes in broadband usability in the near future. More than 41 million European households will start accessing the Internet via high-speed broadband connections by 2006, the research predicts. This compares to just over 10 million broadband households in 2002.

But this will mar the monthly subscription rates for high-speed Internet services, says Datamonitor.  Monthly subscription rates for high-speed Internet services will need to fall to at least USD25 (Rs 1,250) before mass-market uptake becomes a reality.

The research also predicts that Germany will continue to lead Europe in broadband adoption, and UK will overtake France to become the second largest broadband connected country by 2006.

DSL is expected to become the most widely used broadband access technology in almost all markets, except in the Netherlands where cable modem-based services will dominate.

The number of broadband users is expected to increase in the coming year. However, revenues from broadband connectivity will start stagnating from the year 2004 onwards due to reduced monthly subscription rates and a slowdown in consumer uptake.

The research company says that despite a lack of consumer willingness to pay for online content, spending on broadband content will reach USD3.4 billion by the end of 2006, an almost ten-fold increase compared to the total expenditure in 2003.

During 2006, the average Western European broadband user is expected to spend USD76 per year on content.

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