European Broadband Revenues On The Rise

The research firm estimates that high-speed internet services generated almost $4.7 billion (€4.3 billion) in revenue last year. DSL is expected to drive future growth and it is forecasted that broadband revenues will total $18.9 billion in Western Europe by 2006.

Residential ADSL subscriptions are predicted to rise from 2.9 million to more than 33 million by the end of the forecast period with revenues increasing at a compound annual growth rate of 75%. Similarly, The Yankee Group forecasts that business DSL revenues will grow at a 78% CAGR as a growing number of SMEs recognise the benefits of the technology.

A lack of effective competition ensures that the cost of ADSL is significantly higher than cable. However, average revenue per user (ARPU) is expected to converge and stabilise at about $30 for ADSL and $27 for cable modem by 2006, as more players enter the market and high-speed services become more affordable.

Western European Broadband Revenues ($ million)
	2001	2002	2003	2004	2005	2006
Cable Modem Residential Revenue	474	1,052	1,635	2,036	2,376	2,618
DSL Residential Revenue	498	2,019	3,677	5,503	7,003	8,128
DSL Business Revenue	452	1,623	3,128	4,766	6,449	8,150
Total Broadband Revenue	1,424	4,694	8,440	12,305	15,828	18,896
Source, The Yankee Group, 2003