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Monday, 4 February, 2002, 12:54 GMT
Broadband too dear, say Europeans
Broadband Internet
Broadband is seen as the future of the internet
The anticipated boom in European demand for high-speed internet access is unlikely to materialise until subscription prices fall, according to the research firm GartnerG2.

Consumers in Europe's main internet markets - the UK, France and Germany - are not prepared to pay fees up to twice as high as the cost of traditional internet connections, GartnerG2 said.

"The industry has assumed that broadband would set consumers on fire," said Adam Daum, vice president and chief analyst at GartnerG2.

"However, speed alone is not enough of an enticement."

Lack of content

Fewer than 10% of households with internet connections said broadband provided good value, and few have plans to upgrade their connection over the next three years.

This is partly because consumers do not know what broadband services are available.

But, perhaps more importantly, those who do know that there is so far relatively little content aimed at broadband users.

This is a result of lack of investment in the development of broadband websites, GartnerG2 said.

Most businesses have concentrated on building e-commerce websites aimed at surfers with slower web connections, it said.

Expensive

Prices must come down sharply to raise the proportion of households with broadband access above the 10% mark by 2005, the research group said.

Currently, less than 2% of households in the UK, France and Germany have broadband connections.

Subscription fees in the three countries range from 45 to 60 euros (27 to 37; $39 to $52), GartnerG2 said.

GartnerG2's findings are based on a sample of 6,000 households.

See also:

14 Jan 02 | Sci/Tech
Will 2002 be the year of broadband?
03 Dec 01 | Business
UK to speed up broadband
01 Dec 01 | Sci/Tech
High prices cost broadband dear
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