PRAGUE, Czech Republic, June 19, 2003 ? Broadband connections in Central and Eastern Europe are expected to more than double in 2003, driven primarily by demand for DSL Internet access in businesses and homes throughout the region. Total broadband connections are projected to surpass 820,000 at the end of 2003, up from approximately 400,000 in the previous year, according to a new study from IDC.

"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 latest study on broadband services in eleven countries in the CEE region 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 yet taken place 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% of total connections in 2003. Consumer connections will constitute a higher share of the market in countries where broadband penetration is more advanced.

Fixed wireless access remains a popular solution in the CEE region for businesses that do not have access to fixed-line broadband networks. Fixed wireless access (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 leading broadband markets in the region are 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 1Q03 after repeated delays. This will boost the country's broadband services market and contribute to higher growth overall in the CEE region.

IDC's Central and Eastern Europe Broadband Access Services Forecast and Analysis, 2002?2007 (IDC #ET03K, May 2003) study sizes and forecasts broadband access services connections and revenues in the Central and Eastern European countries of Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. Connections and revenue are segmented by consumer and business size, as well as by DSL, cable, FWA, and other broadband access technologies such as satellite, fiber, and powerline.

This study is available for purchase from IDC CEMA, tel. +420-221 423 140 or contact Marketa Kderova at mkderova@idc.com or from your local IDC office.

Source: http://www.idc.com