Friday, July 29, 2005
Dial-Up Dries Up in Europe:
"Published: July 29, 2005
(After August 06, 2005, this article will only be available to eStat Database subscribers.)
A new report says Europe has overtaken North America as the second-largest broadband market in the world.
'What we are witnessing now is the death of dial-up Internet in Western Europe,' says Martin Olausson, senior analyst at Strategy Analytics. 'Over the next five years the leading markets in Europe will phase out dial-up Internet altogether.'
According to Strategy Analytics' new report, 'Europe Surges Ahead on Broadband,' Europe is second to only the Asia-Pacific region as the largest broadband market in the world. The report predicts that total broadband household penetration in Western Europe will reach 63% by 2010, by which time 93% of online households will use broadband to access the Internet.
By the end of the year, the Netherlands will lead all other European countries with 56% household penetration, followed by Switzerland and Denmark.
Germany will have the lowest level of broadband penetration of 14 European countries, with only 24% of German homes having broadband by the end of the year.
eMarketer senior analyst Ben Macklin explains why Germany lags its neighbors: 'Deutsche Telekom continues to completely dominate the broadband sector in Germany, and over the last two years a lack of competition or service innovation has hampered the growth of broadband in the country. Once a broadband leader, Germany now has the lowest household penetration rate of the five major European countries.'
It's not as if broadband has not been growing in Germany. According to eMarketer's estimates, the number of broadband households in Germany grew by 46.2% in 2004, leaving it the sixth-largest broadband country worldwide. However, regional rivals France and the UK grew by 90.6% and 85.7%, respectively, last year.
Like most countries in Europe, Germany's broadband market is dominated by DSL. In fact, according to eMarketer's estimates, less than 4% of Germany's broadband households will connect to the Internet through any other method besides DSL in 2005. Cable providers face a technological/monetary barrier. 'One of the significant barriers to greater broadband competition in Germany is the lack of an alternative broadband infrastructure,' says Mr. Macklin. 'While cable TV is widespread in Germany, it is largely unsuitable for high-speed Internet without massive investment to upgrade it, and this has happened in only a few areas of the country to date.'
For more information on broadband around the globe, read eMarketer's series of five broadband reports: Latin America Broadband, Asia/Pacific Broadband, Europe Broadband, North America Broadband and Broadband Usage & Demographics."
"Published: July 29, 2005
(After August 06, 2005, this article will only be available to eStat Database subscribers.)
A new report says Europe has overtaken North America as the second-largest broadband market in the world.
'What we are witnessing now is the death of dial-up Internet in Western Europe,' says Martin Olausson, senior analyst at Strategy Analytics. 'Over the next five years the leading markets in Europe will phase out dial-up Internet altogether.'
According to Strategy Analytics' new report, 'Europe Surges Ahead on Broadband,' Europe is second to only the Asia-Pacific region as the largest broadband market in the world. The report predicts that total broadband household penetration in Western Europe will reach 63% by 2010, by which time 93% of online households will use broadband to access the Internet.
By the end of the year, the Netherlands will lead all other European countries with 56% household penetration, followed by Switzerland and Denmark.
Germany will have the lowest level of broadband penetration of 14 European countries, with only 24% of German homes having broadband by the end of the year.
eMarketer senior analyst Ben Macklin explains why Germany lags its neighbors: 'Deutsche Telekom continues to completely dominate the broadband sector in Germany, and over the last two years a lack of competition or service innovation has hampered the growth of broadband in the country. Once a broadband leader, Germany now has the lowest household penetration rate of the five major European countries.'
It's not as if broadband has not been growing in Germany. According to eMarketer's estimates, the number of broadband households in Germany grew by 46.2% in 2004, leaving it the sixth-largest broadband country worldwide. However, regional rivals France and the UK grew by 90.6% and 85.7%, respectively, last year.
Like most countries in Europe, Germany's broadband market is dominated by DSL. In fact, according to eMarketer's estimates, less than 4% of Germany's broadband households will connect to the Internet through any other method besides DSL in 2005. Cable providers face a technological/monetary barrier. 'One of the significant barriers to greater broadband competition in Germany is the lack of an alternative broadband infrastructure,' says Mr. Macklin. 'While cable TV is widespread in Germany, it is largely unsuitable for high-speed Internet without massive investment to upgrade it, and this has happened in only a few areas of the country to date.'
For more information on broadband around the globe, read eMarketer's series of five broadband reports: Latin America Broadband, Asia/Pacific Broadband, Europe Broadband, North America Broadband and Broadband Usage & Demographics."
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