Until now, Central and Eastern Europe has been considered something of a broadband backwater but DSL is beginning to have an impact and the number of high speed internet connections is expected to double this year.
In its recent study,
Central and Eastern Europe Broadband Access Services Forecast and Analysis, 2002-2007,
IDC examined services in eleven different countries and found that while cable holds a significant share of the market, DSL has the most potential to transform the broadband landscape.
According to Point Topic, there were just 156,000 DSL lines in Eastern Europe at the end of the first quarter (see Research Shows Worldwide DSL Growth). However, it is predicted that internet penetration will reach 17% in the CEE region this year (see Internet Usage On The Rise In Central And Eastern Europe) and there is an attractive market for all types of operators.
“Cable access still plays an important role in countries where DSL rollout has not yet taken place or has only recently been introduced to the market,” said Joshua Budd, a senior analyst for IDC CEMA. “Although DSL is spreading quickly, cable operators will be able to hold on to a significant share of the market over the next several years, particularly in the residential segment, by offering competitive prices and effective customer support.”
IDC predicts that the number of broadband connections will top 820,000 this year, up from approximately 400,000 at the end of 2002. Businesses account for the majority of connections (60%) with consumer connections constituting a higher share of the market in countries where broadband penetration is more advanced.
Poland, Estonia and Hungary are revealed to be the leading broadband markets in Central and Eastern Europe. Estonia and Hungary were among the first countries in the region to roll out DSL services and penetration levels are therefore high compared to surrounding states. The technology has now been introduced in the Czech Republic and this should provide a further boost to the take-up of broadband in the region.
