Broadband Provider Revenues Rise

European broadband penetration rates are expected to rise for many years, providing increased revenue growth for service providers such as Sweden’s TeliaSonera.

Recent reports indicate that broadband penetration rates in some European countries are now equal to or greater than those in the United States. Broadband's high-speed access is great for users, but is also providing huge revenue growth for providers.

BuddeComm's latest report, "2006-2007 Europe - Telecoms, Mobile and Broadband in Scandinavia," indicates that the share of dial-up revenue fell from 72% in 2001 to 9% in 2006. Broadband is becoming such a de facto standard that in 2007, Sweden's telecommunications giant TeliaSonera stopped offering dial-up for its new subscribers.

Though TeliaSonera may have lost a few customers that did not want broadband services, the company still realized a net sales increase of 5.8% in 2007, with 5.8 million new subscriptions throughout their Nordic, Baltic and Eurasian operations. According to TeliaSonera Broadband President Anders Bruse, growth in broadband is driving sales. Bruse noted, "... We are shifting the product mix, including investments and costs, from traditional to new services to strengthen our positions."

Revenue growth for European broadband providers should continue for many years due to the European Union's initiative to further expand these high-speed services throughout the continent.

Reference

TeliaSonera Annual Report 2007