Broadband investment payback period grows longer

Further evidence that growth in the broadband market in western Europe
is slowing down has arrived in the shape of a study by German research
group Solon Management Consulting. According to Solon, 2008 will see a decline in new customer additions compared to the previous year. Moreover, continuing price falls have led to an extension of the payback time for investments, with initial investment in DSL local-loop unbundling in Germany now only covered after 42 months. Cable operators in the country currently face a payback period of approximately 25 months, according to Solon.

Denmark led western European broadband penetration at the end of 2007, with 82 per cent penetration. Germany came 11th out of 15 countries studied, with 51.2 per cent, while Greece came last with 26.8 per cent. Overall, western European broadband penetration averaged 55 per cent.

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