Skip to main content

European Broadband Driven by Lowest-Price

More people in Europe are basing their broadband service subscriptions on price rather than on whether the service is delivered via fixed or mobile networks. This trend that will have a major impact on how telecom network operators position and promote their services, according to the latest market study by Pyramid Research.

In Europe, the level of competition in each market -- and attractive competitive 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.

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.

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.

Broadband penetration continues to grow across Europe. Fixed broadband penetration rates in a number of countries are high in relation to the levels of income. The high penetration rates are driven by low-cost, unregulated services provided through neighborhood networks or Wi-Fi -- as seen in Bulgaria and the Czech Republic.

In other countries, fixed broadband penetration is low compared with the level of income, and in markets such as Portugal and Austria, mobile broadband has filled the gap left by less than competitive fixed markets.

Growth in mobile broadband can be expected in markets where overall broadband penetration is low. Pyramid expects rapid uptake of 3G in Russia, Slovakia and Ukraine once the networks provide good coverage.

They anticipate limited opportunities for fixed-mobile broadband bundles, because the services are competitive more than they are complementary.

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th