Europe embraces broadband

The number of Europe homes using broadband will rise to 38 million, report predicts

LONDON, England -- Broadband use in European homes is expected to rise rapidly according to an industry report but there is doubt over whether the services provide value-for-money.

Forrester Research says its study predicts homes with broadband Internet access will rise from about 5.5 million in 2001 to about 38 million by 2006.

But others in the new media field believe potential take-up is being hindered by a perceived lack of content.

The Forrester study found interactive digital TV (iTV) take up was expected to be less dramatic that for broadband.

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Its figures said the number of adults having access to iTV was predicted to rise from the current 17.7 million to 27 million by 2004.

iTV revenue, both from retail and advertising, is forecast to rise from 932 million euros ($809m) last year to 15.3 billion euros (£13.3 billion) in 2005.

Game playing on mobile phones is expected to have more than 130 million users by 2005, the study also showed.

But not all feel the growth of broadband and iTV will be all plain sailing.

Milan Sallaba, the principle at Diamondcluster new media consultancy group, told CNN on Wednesday: "Broadband use varies from one European country to another, and it also depends on the particular services in question.

"In the UK the government is pushing for broadband mass appeal but the high cost of about £50 ($71) a month and non-imaginative content hinders its mass-market appeal."

"The price means that the broadband services still mostly appeal to people with a strong interest in technology and computers."