Broadband leaves European consumers cold...

c0y0te

Source: http://www.onbusiness.ie
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Broadband - No rush from consumers

An overwhelming number of European consumers have no intention of splashing out money on high-speed broadband Internet access services over the next three years, a new study says.

The relatively high subscription price, dearth of programming and the consumer's lack of awareness of broadband services are stifling demand in Britain, Germany and France, Europe's three largest Internet markets, according to research firm GartnerG2.


'The industry has assumed that broadband would set consumers on fire,' said Adam Daum, vice president and chief analyst at GartnerG2. 'However, speed alone is not enough of an enticement.'


Internet, telecoms and media firms have made a major bet on broadband, investing huge sums deploying speedier Internet services over souped-up telephone and cable television lines.


The theory is that an enhanced Internet experience would keep users longer online, where they would spend money on e-commerce, view advertisements and pay extra to download movie clips or sports highlights.


But according to the GarterG2 survey, fewer than 10% of Internet households think broadband currently provides good value. Not surprisingly, countries with the highest subscription prices, such as Britain, have the lowest household penetration.

TrickyKid

the whole nature of the web and content provision on it is in such a state of turmoil that this is the worst possible time to 'investigate' broadband.

If people get cheap broadband, people will be able to do things for it, unfortunately the madness of the late nineties, where you built high cost content things before there was anything near critical mass to use them is long gone.

SkepticOne

Originally posted by c0y0te
But according to the GarterG2 survey, fewer than 10% of Internet households think broadband currently provides good value. Not surprisingly, countries with the highest subscription prices, such as Britain, have the lowest household penetration.

I would imagine that far less than 10% in Ireland would consider that Broadband provides good value. Not only because of the extraordinary high prices here, but also because very few have seen it in action.

Fergus

The relatively high subscription price, dearth of programming and the consumer's lack of awareness of broadband services are stifling demand

I believe this has a lot to do with how the incumbents have a stranglehold on most of this 'broadband' in Europe.

They set the price, either too high to protect leased line business etc, or too low to try and make the market uneconomic for possible competitors.

They also do everything they can to shut out the real ISPs - non-telco owned competitors who have a true vision and understanding of how to use the medium and provide content.

And consumer lack of awareness.. well, given metered dial-up, overpriced broadband, and weak cable competition, who can blame them.