New services give Internet access market in Eur...

29/07/2008 - New services give Internet access market in Europe a boost

  • Revenues from Internet access growing by more than 10 percent
  • Telephone flat rates and online video sales are stimulating business
  • Germany with 25 percent largest single market in EU


Berlin, July 29, 2008

The European market for Internet connections is booming. According to the latest information from the European market research institute EITO, revenues from private Internet access connections is growing in 2008 in the EU by around 10.2 percent compared to last year, to 33.7 billion Euro. “Innovative additional services and falling prices are helping the connections business to achieve vigorous growth,” said EITO Chairman Bruno Lamborghini. “Fast Internet connections are being offered today in combination with low-priced telephone flat rates or online on-demand services for movies and music.” At the same time, the prices for data transfer are falling. If connections with a speed of 1 Megabit per second were the standard a few years ago, today twice this rate is usual. According to the latest EITO forecast, by the end of 2008 there will be an estimated 114 million broadband Internet connections in Western Europe, making fast data lines available to 26 percent of the population.

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By far the largest single market in Europe is Germany, with estimated revenues of 8.4 billion Euro for the year 2008. This represents a plus of 8.5 percent compared to last year and a market share of 25 percent in the European Union. France is recording the strongest growth among the EU countries with the largest populations, with an increase in revenues of 22.5 percent, to 4.6 billion Euro. Great Britain, also with 4.6 billion Euro, is achieving growth of 7.2 percent. France and Great Britain each have a market share in the EU of 13.6 percent. In Spain turnover is increasing by 7.6 percent to 3.2 billion Euro. This is equivalent to a share of 9.5 percent. EITO predicts that dynamic growth in revenues from Internet access connections will also continue in 2009, at plus 9 percent to 36.9 billion Euro.

 

Since 1993, the European Information Technology Observatory (www.eito.com) offers high quality and up-to-date information on European and global markets for information technology, telecommunications and consumer electronics. The EITO is managed by Bitkom Research GmbH, a wholly owned subsidiary of BITKOM, the Federal Association for Information Technology, Telecommunications and New Media in Germany. EITO collaborates with leading market research institutes including IDATE, IDC and GfK, and research activities of the EITO Task Force are supported by the European Commission and the OECD. EITO is sponsored by CeBIT, Deutsche Telekom, KPMG, Messe München, Red.es and Telecom Italia.




Contact
:
Maurice Shahd, EITO Press Spokesman, m.shahd@eito.com   


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