Pyramid Research: Europe's Telcos Need Fiber

According to a new report from Pyramid Research entitled "Fiber Buildouts in Europe: A Competitive Necessity for Telcos," in the past year, competition in the broadband and multiplay markets in Europe has become extremely tough due to the economy.

The report examines the potential of fiber developments in selected countries: the Netherlands, Romania, Russia, and Spain.

"Higher speeds and more extensive bundles were introduced, often for less money," stated Bakhyt Weeks, analyst at Pyramid Research and author of the report. "As European economies start to show progress, fiber could shield telcos from mounting competition and provide opportunity for further growth."

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.

"DSL is struggling to compete with cable and particularly fiber in terms of capacity, which is becoming increasingly important especially in multiplay offerings," Weeks stated.

Mobile broadband is also a threat to basic DSL. "As mobile broadband speeds are expected to reach at least 100Mbps, DSL will continue to lose ground," Weeks said. "The only efficient way forward is, again, fiber."