Strategy Analytics: France Leads Europe into DSL TV Era.

Business Editors/High-Tech Writers

BOSTON & LONDON--(BUSINESS WIRE)--Feb. 25, 2004

Incumbent Telcos and Pay TV Companies Will Dominate

6.4 Million Home Market

After years of promises, European phone companies are finally gearing up to offer television

New research from the company's Broadband Media and Communications service predicts that 6.4 million European homes will subscribe to telco-delivered TV services by 2008. Despite efforts by new entrants, such as Free, the French Internet service provider, incumbent national telcos such as France Telecom and Telefonica are likely to win in the race to sign viewers. TV programmers like Canal Plus will also benefit, as telco TV services expand the base of pay-TV households in Europe.

One reason for France's leadership is its high-capacity broadband infrastructure, which allows service providers to offer live television and Video-On-Demand services at sufficient quality. Other markets are set to follow France's lead, however. Commercial DSL TV services have already been announced in Spain, and Strategy Analytics predicts services will be launched in other regions this year, including Scandinavia and Benelux.

"Access to premium, high quality content will be the critical success factor in determining winners and losers in the DSL TV market," notes Peter King, Director of the Strategy Analytics Digital Consumer Practice. "Service providers should partner with leading pay TV providers in order to help secure content rights."

About Strategy Analytics

Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com.