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Churn will be the challenge as broadband competition strengthens
01 February 2008
The good news is that 48 million more Western European households will get broadband over the next six years, says Pete Nuthall. The bad news for ISPs is that churn will rise as customers look for better deals
Broadband household penetration in 2007 and
annual growth varied widely across Europe
Residential broadband penetration in Western Europe is set
to rise by 48 million households over the next six years, from
44% at the end of 2007 to 71% by the end of 2013, according to
a new study by Forrester Research. Over the same period,
Forrester projects the continual marginalisation of dial-up
services, which will account for only 2% of all online
The impact of emerging technologies such as WiMax and fibre to
the home will be limited to 8% of all internet
The addition of 48 million new broadband connections may seem
a healthy opportunity for broadband suppliers, but our forecast
reveals that the key challenge for ISPs will be managing
In 2008, we estimate the level of churn to be 23% across
Western Europe, and this will peak in...
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