Broadband markets across Europe are seeing continued growth in all areas,
according to recent research by Frost & Sullivan.
The Broadband Market in Europe report attributed the growth to deregulatory
initiatives across the region and the ongoing shift towards integrated services
such as triple- or quad-play.
Frost & Sullivan said that another major growth factor is growing demand
for highly customised broadband-based services.
Customers appear willing to pay extra for high-quality broadband services
such as video-on-demand and other multimedia content.
"As we begin to embrace the era of digital lifestyles, providers have begun
to focus on providing interactive communication services," said Julia
Martusewicz-Kulinska, a research analyst at Frost & Sullivan.
"Even in the more nascent markets of Eastern Europe, commoditisation of
access is driving value-added services and triple-play."
Western European broadband markets are generally much more saturated and
mature than the Central and Eastern Europe markets, and the penetration of
broadband lines is growing at a higher rate in the this region.
Growth rates for the Central and Eastern Europe segment are expected to
exceed 30 per cent from 2006 to 2008, while the Western European segment will
exceed 20 per cent.
However, changing business models and new players in the market are expected
to raise competition levels in the coming months.
Frost & Sullivan believes that providers must look to strategic
partnerships in order to provide a wider range of services, such as bundled and
value-added offers.
"One of the key challenges is identifying partners that can provide a
strategic fit in introducing bundled offers," explained Martusewicz-Kulinska.
"Fixed service providers need to sustain their market position by offering
new compelling services for which they would usually need to partner with
solution providers that specialise in either wireless or content services."
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