Standardization and Customer Service Will Drive Transition to Broader-based Home Networking in Europe, Says Yankee Group

Business Wire, July 6, 2004

LONDON -- E[acute accent]Home networking is emerging as a central competitive battleground for European broadband service providers

E[acute accent]Home networking in Europe is booming, and broadband service providers (BSPs) have a strong interest in promoting it, according to the Yankee Group report, Service Providers Must Push Home Networking, Despite Service and Standards Issues. E[acute accent]The pay off for BSPs in promoting home networking is that home networking:

E[acute accent]Increases the depth of their offers, which improves customer loyalty, satisfaction, and stickiness.

E[acute accent]Increases the average revenue per user if is offered as a rental product, frequently the option of choice for BSPs.

E[acute accent]Adds considerable value to the basic broadband connection because it is strongly linked to Internet usage and to extension of the Internet to other devices in the home.

E[acute accent]Increases the prospect of selling premium-priced entertainment services because home networking is strongly linked to audio-visual applications such as video downloading and audio streaming.

E[acute accent]However, new types of home networking that connect consumer electronics equipment raise major technical and customer service issues. Even PC-based networking often is not yet plug and play, and interoperability with other types of equipment is far from finished. E[acute accent]"Ultimately, home networking will become a central aspect of home life, and its momentum will make it one of most strategically important features of broadband service provision," says Graham Finnie, Broadband & Media Europe director. "However, it is vital for all participants to cooperate where possible--and compete where necessary--to reap the full rewards from this important change in consumer services."

E[acute accent]PRESS CONTACT

E[acute accent]For interviews contact Graham Finnie, gfinnie@yankeegroup.com

E[acute accent]CORPORATE CONTACT

E[acute accent]Kimberly Vranas, director of marketing, press liaison, 617.880.0214, kvranas@yankeegroup.com

E[acute accent]THE YANKEE GROUP (www.yankeegroup.com)

E[acute accent]The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.