Digital subscriber line (DSL) penetration in Europe will overtake the US within five years, according to DSL Future Prospects in Europe, a new report from telecoms consultancy and publishing group BWCS. The provision of DSL services is at last beginning to emerge as a viable business, claims the report, released this month.
“If the European telcos follow the right business models then this technology will provide revenues, increase customer loyalty and enable new services, such as voice over DSL, over the next few years. While take-up will vary from one country to another, with Germany leading the field, we believe that Europe will catch up with the US, which has a substantial head start in this area, within five years,” says Ross Parsons, a consultant at BWCS.
The report’s findings echo research conducted by Point Topic recently, which found that DSL growth in the US is beginning to slow, whilst in Europe, Asia-Pacific and South America growth remains strong (see Forecasts).
BWCS claims that the take up of DSL services has been stalled in Europe by the unwillingness of telcos to open up their local networks and the recent lack of investment capital. It says that pressure form national regulatory authorities is finally clearing the way for a DSL roll out.
“Cable companies, though massively in debt, have proved that supplying bundled packages of telephone and entertainment services will drive up average revenue per user (ARPU),” argues Parsons. “BWCS believes that these provide some good business models for telecoms operators to follow. While the majority of telcos will not create content themselves they will be able to facilitate the delivery of bundled packages to customers.”
| DSL growth by region (000s) |
| |
|
|
|
|
| |
Q3 2000 |
Q4 2000 |
Q1 2001 |
Q2 2001 |
| North America |
695 |
818 |
559 |
652 |
| Europe |
|
357 |
520 |
374 |
| Asia Pacific |
|
833 |
866 |
1,330 |
| Other (S America, Middle East) |
|
57 |
36 |
88 |
| Total |
|
2,065 |
1,981 |
2,444 |
| |
|
|
|
|
| Source: Point Topic, 08/01 |
| DSL lines for selected operators, 000s |
| |
|
|
|
| |
30 June 2001 |
31 March 2001 |
30 June 2000 |
| Worldwide totals |
10244 |
7813 |
|
| |
|
|
|
| Bell Canada |
529 |
466 |
120 |
| Bell South |
381 |
303 |
74 |
| Covad |
333 |
319 |
138 |
| Qwest |
360 |
306 |
175 |
| SBC |
1041 |
954 |
399 |
| Verizon |
840 |
720 |
221 |
| Other North America |
579 |
344 |
213 |
| Total North America |
4064 |
3412 |
1340 |
| |
|
|
|
| Belgacom |
94 |
72 |
|
| BT |
70 |
45 |
|
| Deutsche Telekom |
600 (1000 sold) |
370 (850 sold) |
|
| France Telecom |
177 |
96 |
|
| Telefonica |
112 |
88.4 |
|
| Telia (Sweden) |
68 |
50 |
|
| Other Europe |
319 |
345 |
|
| Total Europe |
1440 |
1066 |
|
| |
|
|
|
| Hanaro (Korea) |
745 |
700 |
|
| Hong Kong Telecom |
270 |
240 |
|
| Korea Telecom |
2418 |
1967 |
545 |
| NTT East |
104 |
30 |
|
| NTT West |
186 |
70 |
|
| Chunghwa (Taiwan) |
320 |
140 |
|
| Other Asia Pacific |
523 |
188 |
|
| Total Asia Pacific |
4566 |
3335 |
|
| |
|
|
|
| Source: Point Topic, 08/01, estimates in italics |
