Feeds

SME broadband demand may slow: Analysys

Telcos must focus on managed services

HP ProLiant Gen8: Integrated lifecycle automation

European telecommunications firms must up their game to keep hold of their smaller business customers, according to market analysts.

A new report issued by Analysys on Friday has urged broadband providers in particular to focus on managed services in order to sustain interest from small and medium sized enterprises (SMEs) in western Europe. Managed services are "value-added" extras which a broadband operator may offer in a bundle alongside its core product, such as managed email accounts, or business network security features.

The study assessed 184 SMEs across France, Germany and Britain. It shows that while expenditure by these companies is expected to peak in 2009, the market for managed services in this field will continue to grow beyond this point. SME spend on broadband managed services is forecasted to increase by more than €4bn in western Europe by the end of 2011.

"From 2010 onwards, downward pricing pressure is expected to outweigh take-up of new broadband access connections by SMEs in western Europe," said report author Simon Sherrington. "This will push the value of the Western European SME market for broadband access into a slow decline. In order to sustain revenue growth, providers targeting the SME sector must introduce complementary services, and provision of broadband managed services is a key area for exploitation."

The report suggests that broadband managed services are already in demand with €5.7bn spent on these services by SMEs in western Europe in 2006.

Analysys provides management consultancy and information services and has over 160 staff worldwide. The company is part of the Analysys Mason Group which has offices in Dublin, Cambridge, Edinburgh, London, Madrid, Manchester, Milan, Paris, Singapore and Washington DC.

Copyright © 2007, ENN

Maximizing your infrastructure through virtualization

More from The Register

next story
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Rural mobile coverage: Tweeting twits to join chirping tits in UK's national parks
Yup, someone IS gabbering behind you on the hiking trail
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.