Splendid growth for home broadband predicted

New technologies like WiMAX and Fibre based broadband (FTTH) have not still reached one-tenths of total broadband connections worldwide. Except a few nations like Japan, South Korea, Sweden and Taiwan, these next generation broadband technologies have not made any significant penetration in majority of broadband enabled nations. For example, FTTH is still yet to enter the UK broadband market where we find high speed internet technologies like ADSL 2 and ADSL +2 are making slow advancements. BT’s 21CN network is to be launched next year while Be broadband provider, one of the major ADSL+2 provider has been extending its LLU network across the UK.

Many research reports on the progress of broadband in various regions indicate one common thing – Western Europe is heading towards higher and higher broadband uptake.

Recent Forrester Research confirms this trend, especially in consumer broadband in most nations in Western Europe region. The report says that there will be over 48 million home broadband users by the year 2013 indicating a penetration of nearly three-fourths of total households in this region. This rise on broadband uptake compares with the present 44% of penetration in home broadband.

However, the major concern of the ISPs will be, as Pete Nuthall points out, managing customer churn. He further commented on this issue:

“In 2008, we estimate the level of churn to be 23% across Western Europe, this will peak in 2012 at 31%. Most at risk are incumbents such as BT internet provider, France Télécom, Deutsche Telekom, and KPN, due to regulatory action that force them to open up their networks to competition through local loop unbundling. Incumbents will need to reassess existing retention strategies in the light of increased price-based competition from alternative ISPs.”