Record turnover for Internet connections

06/04/2009 - Record turnover for Internet connections

  • EU market growing by 8.4 percent in 2009 to €37.9 billion
  • Users benefit from falling prices and increased bandwidth
  • Further development of broadband networks is necessary


Berlin, April 6, 2009

The market for fixed-net Internet access in the EU is forecast to grow in 2009 by 8.4 percent to a new record value of €37.9 billion. The market research institute EITO announced this in Berlin. "Business with Internet connections is booming", said EITO chairman Bruno Lamborghini: the downturn in the economy would make no difference to this. "More and more people have access to the Internet and use it also through mobile devices and more and more households are upgrading to fast connections by DSL, broadband networks or cable", said Lamborghini. Broadband Internet allows easy downloading of photos, music or videos, and the practice of distance-working. Some 110 million EU households currently have a broadband connection. Customers are benefiting from falling prices combined with the increasing speed of connections.

Some Internet applications are relatively universal across Europe, independent of the degree of Internet penetration. Communication, through services like email, forums, instant messaging and, more recently, social networking, is still the main reason to go on the Internet (mentioned by 87% of Internet users), together with searching and information browsing. With the development of broadband, entertainment is also becoming a more mass market interest, as seen in the growth of music download services (especially P2P) and recently of video services. According to EITO calculations, total data traffic in the Internet is increasing every year by around 50 to 60 percent. The volume of data of private Internet users in particular is rapidly growing, as more and more high resolution photos, videos and films are transferred in the Internet. "With the growing number of videos and films on offer, users increasingly need faster Internet connections", said EITO chairman Lamborghini. This means that, as well as provision for areas not yet connected, further development of broadband networks is needed for higher speeds of operation.

 

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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