Europe Turns On Broadband Slowly: Report

Contrary to many projections, the adoption of broadband across Europe will be slow, according to a report by Internet research firm Jupiter MMXI.

Broadband access promises fast, continuous connections to the Internet as well as to cable television programming and digital phone lines.

The reasons for the slow uptake include the lack of competition among access operators, low customer demand and the high price of the technology.

Jupiter MMXI said Tuesday it expects that take-up will be gradual over the next five years, with only 14% of European households using broadband by 2005. By that time, 32% of households connected to the Internet will access it using broadband.

The report predicts that 30% of households in Sweden, Finland, Norway and Denmark will be using broadband by 2005.

However, Germany and the United Kingdom will develop more slowly, with Germany expected to have 17% and the U.K. 15% of households using broadband at the end of 2005. France, Italy and Spain are expected to have around 10% of households accessing broadband by then.

European telecom providers have spent millions to launch universal mobile telecommunications service, known as UMTS or third-generation networks, which will offer wireless broadband services. Over the past year, companies have pledged more than $100 billion for 3G licenses and face more costs for infrastructure.

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