An overwhelming number of European consumers have no intention of splashing out money on high-speed broadband Internet access services over the next three years, a new study says.
The relatively high subscription price, dearth of programming and the consumer's lack of awareness of broadband services are stifling demand in Britain, Germany and France, Europe's three largest Internet markets, according to research firm GartnerG2.
'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.'
Internet, telecoms and media firms have made a major bet on broadband, investing huge sums deploying speedier Internet services over souped-up telephone and cable television lines.
The theory is that an enhanced Internet experience would keep users longer online, where they would spend money on e-commerce, view advertisements and pay extra to download movie clips or sports highlights.
But according to the GarterG2 survey, fewer than 10% of Internet households think broadband currently provides good value. Not surprisingly, countries with the highest subscription prices, such as Britain, have the lowest household penetration.
