Telecommunications Liberalization Fuels Growth in IP Services

NEW YORK, NY -- (MARKET WIRE) -- 03/09/06 -- eMarketer released today
a new report analyzing results of France opening its formerly
monopolistic telecommunications market to competitors.


France is leading the way in so-called "triple play" adoption.
Already, thanks to its competitive market, three of the ten largest
broadband providers in Western Europe now are based in France. Up to
40% of all French consumers will soon be using VoIP, and IPTV use is
also on the rise.


"Like the UK and Germany, France has opened its formerly monopolistic
telecommunications market to competitors, and the results have been
spectacular," says James Belcher, Senior Analyst and author of the new
report, French Connections: The Triple Play Triumphs. "France Telecom
now shares the market with nimbler DSL providers who also offer
broadband-based phone (VoIP) and television (IPTV) services for less
money."


Some of the key data points in the report include:



-- 40% of phone calls in France will be over VoIP by the end of 2006.

-- By 2015, 75 million people worldwide will get their TV from an ISP,

rather than a cable or satellite provider.

-- A third of US cable subscribers have said they'd jump ship for less

than $5 difference in their monthly cable bill; French ISP Free currently

offers 20Mb/s DSL, unlimited in-country VoIP, and 70 channels of digital TV

for Eur30, which points up the competitive potential in this bundled

service.

-- Worldwide VoIP revenue will hit $96 billion by 2011.



France's broadband penetration has been booming since liberalization
of the telecommunications market took off in 2004, and over 75% of all
Internet users in France now have broadband access.


In addition to the country's high and growing broadband use, IPTV
(Internet Protocol Television) is seeing high adoption growth, a trend
reflected in the rest of Western Europe. Incumbent telecommunications
service providers in Italy, Spain, Belgium, Switzerland and the UK
have already launched or plan to launch IPTV services in 2006, most in
response to competitive threats similar to those faced by France
Telecom.


"The overall shift to IP-based services holds many technological and
competitive challenges, but brings with it opportunities to sell more
than just TV and phone packages," says Mr. Belcher.


Other countries are watching France closely to see what price/feature
combinations make the difference in this competitive and rapidly
changing environment.


"The next several years will see a market-share race to see who can
provide triple-play services to the most customers," says Mr. Belcher.
"France is expected to lead the way in adoption, although other
countries such as China will eventually overtake them in terms of
sheer numbers."


eMarketer's French Connections: The Triple Play Triumphs answers these
key questions:



-- How many French consumers will get their phone and television service

from an ISP?

-- How can established players avoid disintermediation in this

environment?

-- To what extent will other markets follow the French pattern of triple

play proliferation?

-- How will ISPs market services effectively when those services are

commodities?

-- And many more...



Click for more information on eMarketer's new report French
Connections: The Triple Play Triumphs.


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