European broadband reaches mass market status

Service providers expand offerings in response to growing demand.

Broadband and associated IP-based services have reached "mass-market status" in Europe, research published today has reported.

According to the Yankee Group 2006 European Broadband Consumer Survey, this fast-growing enthusiasm for VoIP is accompanied by a wider willingness to embrace IP-based services.

The study found that two-thirds of broadband consumers purchase multiple services from the same broadband provider, and nearly one-third buy three products.

At least one-quarter of consumers are reported to be using internet telephony, while one in 10 has a VoIP handset.

Yankee Group also noted that broadband service providers are increasingly being seen as trusted sources for value-added content and services as well as home networking equipment.

"European broadband consumers' willingness to pay for more than access is reaching a plateau," said Jonathan Doran, senior analyst for Broadband & Media Europe at Yankee Group.

"Fostering customer relationships by adding valued services, increasing premium security options and exploiting trends in digital TV services will be key for players to differentiate from the competition and grow their customer base."

The survey also revealed that advertised access download speeds are losing relevance as overall bandwidth availability increases and the focus of broadband shifts more toward content and services.

The Yankee Group report covers broadband usage in France, Germany, Italy, The Netherlands, Spain, Switzerland and the UK.

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