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SME Broadband Demand Could Decline

Posted: 06th Mar, 2007 By: MarkJ
New research from Analysys suggests that demand for broadband by small and medium sized businesses (SME) could dwindle unless more "value-added" managed services are offered:

The study assessed 184 SMEs across France, Germany and Britain. It shows that while expenditure by these companies is expected to peak in 2009, the market for managed services in this field will continue to grow beyond this point. SME spend on broadband managed services is forecasted to increase by more than €4bn in western Europe by the end of 2011.

"From 2010 onwards, downward pricing pressure is expected to outweigh take-up of new broadband access connections by SMEs in western Europe," said report author Simon Sherrington. "This will push the value of the Western European SME market for broadband access into a slow decline. In order to sustain revenue growth, providers targeting the SME sector must introduce complementary services, and provision of broadband managed services is a key area for exploitation."

The report suggests that broadband managed services are already in demand with €5.7bn spent on these services by SMEs in western Europe in 2006.

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