Although broadband is proving popular in some parts of Europe, significant growth will not occur until dial-up internet access has peaked, according to a study from Probe Research.
The report,
European/African Internet Connectivity and Leading European ISPs, forecasts that providers can expect to see ongoing growth in broadband through 2007. However, Probe suggests that many consumers currently have no motive to switch to high speed access and need to be convinced of the merits of upgrading.
“Broadband providers need to bear in mind that dial-up access is an established service that adequately fulfils user expectations and, lacking a compelling reason to change, should continue to satisfy the bulk of the market,” explained senior research director, Alan Mosher. “It takes time to displace technologies and services that continue to work well, and dial-up internet falls into this category.”
However, Mosher believes that once dial-up access has peaked in Western Europe, broadband will start to appeal to more discerning internet users.
“DSL and cable access provide the combination of always-on connectivity at a fixed price. Former dial-up users in Europe who have previously been faced with per-minute connectivity charges will be able to surf at will, rather than having to constantly drop their connections for the sake of reducing their monthly line charges.”
The report places the onus on broadband providers to offer attractive services and applications that will lure consumers away from dial-up access. However, this will prove more difficult in the developing economies of Eastern Europe and Africa because of the low household computer-ownership numbers and outmoded telecom systems.
