CEE broadband connections to 'more than double' in 2003, report.

EUROPEMEDIA-(C)2003 Van Dusseldorp & Partners - http://www.vandusseldorp.com/

Broadband connections in Central and Eastern Europe will more than double in 2003, IDC predicts total broadband connections to surpass 820,000 at the end of 2003, up from approximately 400,000 in the

"DSL rollout in Estonia, Hungary, and Poland has contributed dramatically to growth in the region's broadband market," said Joshua Budd, a Senior Analyst for IDC CEMA. "While cable internet still holds a significant share of the market, DSL is quickly emerging as the technology of choice among broadband users in CEE."

IDC's new report, "Central and Eastern Europe Broadband Access Services Forecast and Analysis, 2002-2007," examines broadband services in eleven countries in the CEE region. The study indicates that DSL will continue to lead the CEE broadband market in terms of connections over the next several years.

"Cable access still plays an important role in countries where DSL rollout has not taken place yet or has only recently been introduced to the market," Budd said. "Although DSL is spreading quickly, cable operators will be able to hold on to a significant share of the market over the next several years, particularly in the residential segment, by offering competitive prices and effective customer support."

Businesses account for the bulk of broadband connections in the region. IDC forecasts that businesses will represent approximately 60 per cent of total connections in 2003. Consumer connections will constitute a higher share of the market in countries where broadband penetration is more advanced.

According to the report, fixed wireless access remains a popular solution in the CEE region for businesses that do not have access to fixed-line broadband networks. FWA has also become a successful alternative to leased lines, which can be expensive for the average small or medium-sized business. Nonetheless, FWA connections comprise a small share of the market compared to DSL and cable.

The study identifies the leading broadband markets in the region as Poland, Estonia, and Hungary. Both Estonia and Hungary were among the first countries in the region to roll out DSL services, and as a result penetration levels in both countries are high compared to other markets in the region. DSL services became available in the Czech Republic in first quarter of 2003, after repeated delays. This is expected to boost the country's broadband services market significantly and contribute to higher growth overall in the CEE region.((Distributed via M2 Communications Ltd - http://www.m2.com))