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Growth in Demand for Broadband Managed Services

14 April 2007

DUBLIN, Ireland -- Research and Markets has announced the addition of “Strategies for Selling More to SMEs: Analysis of demand for broadband managed services and service bundles” to their offering.

“Growth in demand for broadband managed services in the SME market is creating a new potential source of revenue for suppliers of broadband access services. Billions of euros in additional annual revenue are ready to be shared among suppliers that can provide SMEs with the right service packages to complement basic Internet access.”

Between now and 2011, the number of small and medium-sized enterprises (SMEs) buying broadband access for the first time will fall year on year, as broadband penetration of SMEs approaches its limit. Growth in customer numbers will slow dramatically and competition will continue to drive prices down. As a result, the value of the SME market for broadband access will reach a peak, then start to shrink. At the same time, the increased broadband penetration in the SME market will fundamentally change the way companies buy telecoms and information technology (IT) services. Given the rising costs and increasing complexity of managing IT services in house, SMEs are already becoming more open to buying a range of managed IT, software and communications services.

An opportunity exists for broadband providers to drive new revenue growth through selling broadband managed services to SMEs. However, competition among providers of broadband managed services is increasing, customer requirements are exacting and establishing credibility can be a hurdle for providers to overcome.

Underpinned by a survey of SMEs across France, Germany and the UK, Strategies for Selling More to SMEs: analysis of demand for broadband managed services and service bundles reveals what kinds of broadband managed services SMEs are buying, what types they want to buy and how they prefer to buy these services. The report provides detailed forecasts of SME spend on broadband access and broadband managed services for five countries (France, Germany, Italy, Spain and the UK), as well as for Western Europe as a whole, and recommends actions for various types of operator and service provider. Case studies of European and North American operators and service providers are included to illustrate how these companies are targeting the SME market for broadband managed services.


 

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