Broadband subscribers in Europe in 2007 generated $98 billion in revenue for the phone and cable TV companies, according to a European Commission (EC) report. The pie is still growing – 19 million broadband subscribers were added last year – more than 50,000 European homes and offices a day.
Broadband speeds increased even as monthly broadband fees declined. More than half of Europe’s broadband connections have speeds between 2 Mbps and 10 Mbps, the report said, adding that a significant number have speeds in excess of 10 Mbps.
Increased competition, much of it the result of unbundling mandates, has reduced monthly rates and helped boost speeds.
Still, the EC said incumbent telcos, which once had monopolies on phone service, are restricting broadband growth because they have total control over nearly half the EU’s broadband lines. The EC report said newer rivals that take advantage of unbundling regulations would increase broadband usage and speeds and keep rates down better than incumbent telcos.
Denmark, Finland and the Netherlands, the Commission said, have the highest percentage of broadband users in the world but the EU as a whole trails other regions with its 20% broadband penetration.
The Commission said the number of users of mobile Internet services doubled last year to 88 million, 20% of the EU’s population.
The telecommunications sector in the EU generated almost $473 billion in 2007, up 1.9% over 2006. Of that, $216 billion came from mobile phone users.
The report warned mobile phone operators that they are still charging subscribers too much for roaming Internet access and text messaging when their subscribers visit other countries. When roaming charges for mobile phone calls was capped, it said, prices fell 14%.