Fiber is a Necessity for Telcos in Europe's Post-Recession Growth, Pyramid Research Finds


CAMBRIDGE, Massachusetts, September 9 /PRNewswire/ --

At the dawn of post-recession growth in Europe, it is time for large
telcos to revise capex cuts and resume fiber rollout plans, according to a
new report from Pyramid Research (www.pyr.com), the telecom research arm of
the Light Reading Communications Network (www.lightreading.com).

Fiber Buildouts in Europe: A Competitive Necessity for Telcos examines
the potential of fiber developments in Europe and the factors that
increasingly push incumbents and other DSL operators toward fiber. It
contains a detailed analysis of the competitive technology and fiber
developments in selected countries: the Netherlands, Romania, Russia, and
Spain. The 16-page report also provides Pyramid Research's five-year forecast
on FTTH and FTTB in the four selected markets and in Europe overall. Download
an excerpt of this report here:
http://www.pyr.com/downloads.htm?id=5&sc=PR090909_INEUR1.7

In the past year, competition in the broadband and multiplay markets has
become extremely tough as operators have had to fight for customers'
shrinking budgets, notes Bakhyt Weeks, analyst at Pyramid Research and author
of the report. "Higher speeds and more extensive bundles were introduced,
often for less money," Weeks says. Looking to 2010 and beyond, as customers
begin to loosen their budget strings, they will want higher speeds and more
services. "As European economies start to show progress, fiber could shield
telcos from mounting competition and provide opportunity for further growth,"
she suggests. "Telcos are racing against cable companies -- and against
time."

DSL has managed to gain the dominant position among broadband access
technologies in some markets thanks to its historically vast network
coverage; however, the pressure from other technologies is mounting. "In CEE,
where DSL is growing simultaneously with other broadband technologies, the
pressure is the strongest," comments Weeks. Incumbents are missing out on
broadband coverage opportunities by focusing only on DSL-covered areas all
across Europe. "DSL is struggling to compete with cable and particularly
fiber in terms of capacity, which is becoming increasingly important
especially in multiplay offerings while mobile broadband is also a threat in
the up to 5Mbps speed range," Weeks explains.

"Fiber would shield telcos from mobile broadband, as its speed provides
it with a strong competitive advantage even against LTE," concludes Weeks.
Mobile broadband is positioned as a substitute to basic DSL, and telcos are
being increasingly pushed to provide higher speeds to differentiate their
offer. "As mobile broadband speeds are expected reach at least 100Mbps, DSL
will continue to lose ground," she says, "the only efficient way forward is,
again, fiber."

Fiber Buildouts in Europe: A Competitive Necessity for Telcos is part of
Pyramid Research's Europe Telecom Insider report series. This report is
priced at US$595 and can be purchased online here:
http://www.pyramidresearch.com/store/ins_eur_090831.htm?sc=PR090909_INEUR1.7
or by contacting Amalia Vega via email at avega@pyr.com.

For more information about Pyramid Research's products and services,
please visit www.pyr.com or contact us at info@pyr.com.

About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media, and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies, and emerging business models,
powered by the bottom-up methodology of our market forecasts for over 100
countries -- a distinction that has remained unmatched for more than 25
years. As the telecom research arm of the Light Reading Communications
Network, Pyramid Research works with Heavy Reading, providing the
communications industry's most comprehensive market data, trusted research
and insightful technology analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading
online media, research, and focused event company serving the US$3 trillion
worldwide communications market. Lightreading.com is the ultimate source for
technology and financial analysis of the communications industry, leading the
media sector in terms of traffic, content, and reputation. Light Reading's
research arms, Heavy Reading and Pyramid Research, provide the most
comprehensive communications research, market data, and technology analysis
in close to 100 markets around the world. Light Reading produces nearly 20
targeted communications events including TelcoTV, Ethernet Expo New York and
Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as
focused one-day events tailored for cable, mobile, and wireline executives.
Light Reading was acquired by United Business Media in August 2005 and
operates as a unit of TechWeb.

About TechWeb

TechWeb (http://techweb.com/aboutus), the global leader in business
technology media, is an innovative business focused on serving the needs of
technology decision-makers and marketers worldwide. TechWeb produces the most
respected and consumed media brands in the business technology market. Today,
more than 13.3 million* business technology professionals actively engage in
our communities created around our global face-to-face events, Interop, Web
2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network,
Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and
The Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street &
Technology magazines. TechWeb also provides end-to-end services including
next-generation performance marketing, integrated media, research, and
analyst services. TechWeb is a division of United Business Media, a global
provider of news distribution and specialist information services with a
market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly
connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information
distribution, targeting and monitoring; and, the development and monetization
of B2B communities and markets. UBM's businesses inform markets and serve
professional commercial communities -- from doctors to game developers, from
journalists to jewelry traders, from farmers to pharmacists -- with
integrated events, online, print, and business information products. Our
6,500 staff in more than 30 countries are organized into specialist teams
that serve these communities, bringing buyers and sellers together, helping
them to do business and their markets to work effectively and efficiently.
For more information, go to http://www.unitedbusinessmedia.com.

Press contact:
    Jennifer Baker
    +1-617-871-1910
    jbaker@pyr.com

© PR Newswire Association LLC.

News archive

Subscribe to AfterDawn's weekly newsletter.