Fixed or Mobile? Price Drives Broadband Choice for Subscribers in Europe
Published on: 8th Dec 2009
Note -- this news article is more than a year old.
More consumers in Europe are basing their broadband service subscriptions on price rather than on whether the service is delivered via fixed or mobile networks, a trend that will have a major impact on how network operators position and market their services, according to a new report from Pyramid Research.
In Europe, the level of competition in each market and pricing have emerged as the determining factors affecting subscriber broadband purchase decisions. "The dynamics in the fixed broadband market are shaping those in the mobile broadband segment, and as mobile technologies improve and mature, they will have a stronger impact on the fixed segment," notes Jan ten Sythoff, Manager of mobile content at Pyramid Research and author of the report.
"There is a stronger correlation between GDP per capita and broadband adoption when cellular and fixed networks are measured together than if fixed and mobile broadband technologies are examined separately, which strongly suggests that subscribers tend to choose between the two when making purchase decisions," says Sythoff. "Mobile operators now need to ensure that their broadband packages are positioned competitively with other mobile and fixed broadband offers, while fixed operators also need to focus on both sectors, with pricing and bundling as key differentiators."