Fiber Frenzy Won't Spread to Europe's Telecom Networks Anytime
Soon, Heavy Reading Finds
European Network Operators Will Use Next-Gen DSL to Deliver Advanced Broadband
Services to Consumers, Concludes New Report
NEW YORK, March 17 /PRNewswire/ -- The expected surge in U.S. telecom carrier
deployments of fiber-optic access technology isn't likely to occur in Europe
before the end of this decade, due to key differences in telco network design,
concludes a major new study released today by Heavy Reading
(http://www.heavyreading.com/), the market research division of Light Reading
Inc.
Next-Generation Broadband in Europe: The Need for Speed catalogs and analyzes
Europe's emerging residential broadband environment from the perspective of
both the wider region and the individual national markets. By charting the
current status and projected progress of residential broadband initiatives, the
report offers a clear and compelling view not only of which technologies are
likely to drive the expansion of residential broadband services in Europe but
also which service providers are best positioned to deliver those services to
Europe's broadband users.
The report covers current and projected broadband deployment plans for nearly
three-dozen national and pan-European telecom carriers and cable network
operators, including BT Group (NYSE:BT) (LONDON: BTA) , Deutsche Telekom
(NYSE:DT), France Telecom (NYSE:FTE), and Telefonica (NYSE:TEF).
"Despite the race to deliver higher bandwidth to their customers, most telecom
operators in Europe do not believe they will need to upgrade to fiber access in
the next three to four years," notes report author Graham Finnie, Senior
Analyst at Heavy Reading. Copper local access loops in Europe are significantly
shorter than in the U.S., which means European operators can deliver higher
data rates by using next-generation DSL technologies such as ADSL2+ and VDSL,
instead of replacing copper loops with more expensive fiber, Finnie adds.
Other key findings of the report include: Broadband adoption is surging throughout Europe, but there is still plenty of
room for future growth. Total broadband lines grew by more than 65 percent in
2004, with the U.K., France, Switzerland, and Italy registering the highest
growth. For the countries included in this report, overall broadband
penetration by household is 21 percent, but there is wide variation, with
Belgium, the Netherlands, and Switzerland all above 30 percent, and Ireland and
Greece below 10 percent. Among the largest national markets, Germany has the
lowest penetration, at 16 percent.
Total broadband access lines in the region will nearly quadruple over the next
five years. Heavy Reading projects that broadband subscribers in this region
will grow from 38 million at the end of 2004 to 128 million at the end of 2009,
representing a penetration rate of 69 percent. Growth is following a classic
S-curve trajectory; our forecast assumes that over the next decade, growth will
rise to 90 percent of households as incumbent telcos replace their existing
networks with all-broadband networks.
The broadband service triple play of voice, data, and video will become
strategically important in the battle for European market share. Almost every
major broadband provider in Europe is either offering triple play or is
planning to do so within the next 12 months.
Next-Generation Broadband in Europe: The Need for Speed, a 59-page report, is
published in PDF format and costs $3,495. The price includes an enterprise
license covering all of the employees at the purchaser's company.
For more information, or to request a free executive summary, contact: Dave Williams
Sales Director, Heavy Reading
415-321-3750, ext. 30
Press/analyst contact:
Dennis Mendyk
Managing Director, Heavy Reading
201-587-2154
About Heavy Reading
Heavy Reading is an independent market research organization offering
quantitative analysis of telecom technology to service providers, vendors, and
investors. Its mandate is to provide the comprehensive competitive analysis
needed today for the deployment of profitable networks based on next-generation
hardware and software. DATASOURCE: Heavy Reading CONTACT: Dave Williams, Sales Director of Heavy Reading, +1-415-321-3750 ext. 30, , Dennis Mendyk, Managing Director of Heavy Reading, +1-201-587-2154, Web site: http://www.heavyreading.com/ http://www.lightreading.com/
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