Euro Broadband Growth Seen to Slow
From 2003, today's volume-driven purchases will be superseded by an on-demand market, where carriers will buy bandwidth in smaller increments, more tailored to end-user demand, and at lower fixed cost to them. The days of capacity overbuy are rapidly coming to an end as carriers seek to control their costs, leading to a step change in the way that bandwidth is provisioned and purchased in Europe.
"To be a successful regional broadband provider, you need lowest-cost network, data centres, and broadband local access", says Sue Uglow, research director at Ovum. "But most of today's pan-European players are in a hopeless position to achieve this kind of coverage. High debt, high fixed costs, and the failure of local loop unbundling are all contributing to the melt-down."