Feeds

Broadband in Europe stalls

Nose down

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Price is key to the take-up of broadband, according to the latest research from Gartner.

The analyst firm found that punters are unprepared to fork out the extra cash needed to buy broadband services and will only consider it if the price falls below £20 (E30) a month.

According to Gartner, only one in ten people currently thinks broadband provides value for money. Not only do they want to pay less, they also need a reason for buying it in the first place.

Based on this lukewarm assessment of broadband, analysts forecast that only ten per cent of households in France, Germany and the UK will have broadband access by 2005.

According to analysts the situation is made worse because they argue that there is currently no 'must have' application to convince the majority of consumers they need broadband. And paying for content is simply just not on.

Said Adam Daum, vice president and chief analyst at GartnerG2: "The industry has assumed that broadband would set consumers on fire.

"However, speed alone is not enough: there must also be attractive broadband content...[and] in the absence of good content, our research shows that consumers are very price-sensitive.

"To achieve widespread adoption of broadband, the price needs to fall from its current level of E45-60 per month to less than E30."

To stimulate demand Gartner reckons there needs to be "attractive content", lowers prices and the chance for people to try broadband before they commit to buying it.

Gartner's theory may soon be put to the test. According to reports BT is set to announce on Thursday that it is to slash the cost of its broadband service in the UK. We live in hope.

Still, while Europe gets to grip with its broadband shortcomings, Bill Gates told the World Economic Forum in New York that the high cost of broadband in the US was stifling demand.

Amazingly, there are still some people who belive that the take-up of broadband is not reliant on price. Imagine. ®

Related Story

BT to slash broadband charges

New hybrid storage solutions

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.