WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 49 / 356
4.5.4 Cost comparison among broadband technologies
Broadband may offer traditional telecommunications service providers the chance to enter
the video distribution business, it also allows cable service providers to compete in the voice
market. Broadband allows service providers to approximately double the average access
revenue per user (ARPU) when compared to traditional dialup but it also provides
consumers with the opportunity to consolidate multiple lines for voice, and Internet access
into a single broadband line.
For the specific broadband service of Internet protocol interactive television (IPTV), IDC
estimates that 6% of Western European households will subscribe to services by 2009 with
30 telcos and network operators developing and offering iPTV services. It is anticipated that
the largest IPTV markets in Europe in 2009 will be France, Italy and Spain, with strong
growth expected in Benelux and Nordic countries. The most successful broadband operators
are expected to differentiate product offerings from those already available by providing
high-quality content with interactivity.
In addition, for broadband technologies Europe and the United States are expected to reach
an average household penetration rate of more than 60 percent by 2010.
Table 4.5 compares the options for Internet access at the present time for different
technologies. The figures come from a recent comparative survey in Italy (therefore regional
and provider dependent) and should thus be used only as a broad guideline.
Start up costs
(Euro)
Typical cost per
month (Euro)
Typical download
(mb/sec)
Availability
Fiber optic 60 30-140 5-50 low/medium
Cable modem 70 40-50 1-5 medium
DSL 50 25-35 5-20 medium/high
Dial up 25 7-25 0,028 everywhere