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Long-time European Internet Users Are First in Line for Broadband

   by Yankee Group

    01 May, 2003


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Editorial description(s):

Download Description
In this report, we present results from the Yankee Group’s European Online Survey that explores how European consumers are using the Internet and how the use of broadband is developing. Exhibit 1 shows the split of our survey base by access technologies, with 38 percent of respondents taking broadband today (this is higher than the Internet population at large, but enables us to analyze differences with greater confidence). The key findings in the survey are as follows: Broadband users spend much more time online that narrowband users. Broadband users are heavy users, offering more opportunity to service providers to upsell new products, features and applications. Broadband behavior is not radically different for the core Internet applications. Both groups saw e-mail and search as the most important applications. Rich media use is significantly higher among broadband users but the majority of use is unlicensed file downloading and audio streaming. Providers must therefore work urgently to encourage legitimate services to develop, thereby improving the potential for earning additional revenues. Researching products and services online is now one of the most popular online tasks. European consumers (broadband and narrowband) turn to the Web like North American consumers when planning new purchases. There is a clear opportunity here for providers to help consumers to find what they need—and earn money from it. New content experiences are not driving early broadband use. Instead, consumers are enjoying that broadband provides an always-on connection, flat-rate pricing, and quicker access to conventional Web pages and services. In the short term, BSPs should continue to focus on increasing adoption rates by promoting self-provisioning, boosting customer support, and launching tiered pricing. Longer term, however, we believe BSPs will have to decide what kind of service providers they want to be. We conclude that there are three potential scenarios for the future of BSPs in Europe, ranging from leading broadband platform providers to utility access providers.

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