European Fixed Line Broadband Providers in Fight to Protect Future Revenue
In the next 5 years fixed line broadband providers will go head to head with mobile operators (providing mobile broadband services via USB dongles) to capture 48 million new-to-broadband customers across Europe. Aggressive marketing and pricing strategies from mobile operators will significantly impact the fixed-line business; 17 million new customers will forgo fixed line broadband to sign up to the mobile broadband services and a further 9 million existing fixed line broadband customers will terminate their contracts to take advantage of the cheaper mobile broadband alternative.
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Western Europe Consumer Broadband Market to 2013
Since 2007, mobile broadband USB modem sales have rocketed; their fast uptake has caught everyone by surprise, including the mobile operators that sell this product. Many observers predict that mobile broadband connections will overtake fixed within the next five years.
Forrester's forecast for consumer mobile broadband published today refutes that:
Their report claims that although mobile broadband will see rapid growth it will not overtake fixed broadband in the next five years. The consumer version of this relatively new product will continue to see success, growing from 1.5 million mobile-only users at the end of 2007 to 28 million in 2013.
Fixed-only connections will account for 88% of the total consumer broadband market. By the end of 2008 but will fall to 67% by the end of 2013 representing 83 million fixed-only broadband connections.
"The success of mobile broadband is worrying product strategists at fixed operators as they struggle to assess the impact on their residential fixed broadband business. The news included in this report showing a significant dominance of fixed broadband services will go some way to ease their mind. However, to challenge the fierce competition it will face we suggest a concentrated effort to capture the new-to-broadband customer segment in the next 5 years” said Pete Nuthall, Analyst Forrester Research.
Posted to the site on 23rd July 2008