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Strategy Analytics to broadband service providers: Innovate or else

Broadband Service Providers (BSPs) must do more to differentiate themselves in what is becoming an increasingly com...


October 22, 2007  


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Broadband Service Providers (BSPs) must do more to differentiate themselves in what is becoming an increasingly commoditized market, or risk becoming simple utilities, according to a report just released by Strategy Analytics, entitled “Triple Play Chaos: Lessons From France’s Hyper-competitive Broadband Market.”

“The French market has followed a rather predictable evolutionary path,” says Ben Piper, director of the Strategy Analytics broadband network strategies service.

“As the market reaches commoditization, operators are faced with a critical decision: provide true innovation through services, branding or overall customer experience in their offerings, or risk getting squeezed out of the market.”

France’s broadband market transformed itself from one of the most monopolistic into one of the most competitive in a period of just six years.

The study notes that while the French broadband market is indeed hyper-competitive, it is not unique.

Throughout the world, broadband offerings and markets are becoming increasingly standardized.

“Today’s situation in France is in many ways reminiscent of Japan in the late 1990s, where a liberalized regulatory environment and ‘bloodbath’ pricing quickly commoditized DSL,” says Piper.