Skip to main content

European Broadband Nears Saturation

Consumer broadband adoption is currently increasing at its fastest rate in many markets across Western Europe, according to a report published by market analysts Datamonitor. However, the company does not expect this growth to continue for long, and estimates that consumer broadband penetration will ultimately settle at around 60 percent in terms of household penetration in advanced markets.

"The current situation in many markets can be best described as one of rapidly increasing penetration, where broadband has effectively entered its growth sweet spot", said Tim Gower, enterprise communications analyst at Datamonitor and author of the report. "With some markets potentially experiencing changes in the household penetration of broadband of up 10 percent in a calendar year, service providers must be well positioned to take advantage of the forthcoming penetration acceleration, prior to the inevitable slowdown."

Datamonitor's report highlights the current and future state of consumer broadband markets in Western Europe and North America, focusing on the likely service provider revenues in 16 countries. At present, the French, Norwegian and Dutch markets have the highest penetration of DSL in Europe. Effective regulation has encouraged extremely fierce price competition in these markets which has led to rapid consumer uptake. Incumbent operators in Portugal and Ireland, on the other hand, have been less effectively regulated and this situation has led to limited competition, high prices and a slower increase in DSL household penetration.

Popular posts from this blog

Frontier AI Peaked. Here's What Comes Next

The prevailing narrative around artificial intelligence (AI) has been one of relentless scale. Bigger models, bigger clusters, bigger budgets. The assumption, largely unchallenged until recently, was that raw parameter count translated directly into competitive advantage. New research from Omdia suggests it's time to retire that assumption. According to the latest market study by Omdia, parameter growth in frontier AI models has slowed to around 5 percent annually since 2021, a stark contrast to the more than hundredfold expansion seen between 2019 and 2021. Enterprise AI Market Development For executives who have been making infrastructure and investment decisions based on the assumption that AI would keep demanding ever-larger, ever-more-expensive hardware, this finding deserves serious attention. The race to the top of the model size leaderboard has, at least for now, plateaued. Crucially, Omdia's analysts are not reading this as an AI winter. Alexander Harrowell, senior pri...