Jupiter MMXI forecasts that the adoption of broadband will be slow across Europe, contrary to many of the projections currently being made in the marketplace. The reasons for this include the lack of competition amongst the access operators, low customer demand and the most significant factor - the high price of the technology. It currently costs over 200 euros for a connection and then about 50 euros for a monthly subscription across Europe.

Jupiter MMXI expects that take up will be gradual over the next five years, with only 14% of European households using broadband by 2005. By that time, 32% of online households will be accessing the Internet from broadband.

The big challenge for suppliers is to create customer demand by communicating the benefits of broadband effectively. Staffan Engdegard, author of report said "The high prices currently being charged for broadband access means that the majority of consumers are discouraged from the technology. To attract these people, companies need to improve their marketing message to ensure that Europeans understand the added value of broadband."

Currently, consumers are only aware of the improved Internet connection that broadband provides - the potential of broadband has yet to be fully exploited. For instance, consumers could have access to an unlimited choice of films on demand, improved music download quality, the ability to play games over the Net with hundreds of people, software rental, e-books and e-learning.

The results of a Jupiter MMXI consumer survey conducted across seven markets in Europe further illustrate the lack of awareness about the potential of broadband: The main reason consumers said they would install a broadband connection is to keep the telephone line free whilst surfing the Net. 33% wanted it for faster Internet access and 29% to download software quickly. Jupiter MMXI projections indicate that the Nordic region, with the highest Internet penetration in Europe, will adopt broadband the fastest. The report predicts that 30% of households in Sweden, Finland, Norway and Denmark will be using broadband by 2005. Germany and the UK are expected to develop more slowly; Germany will have 17%, and the UK will have 15% of households using broadband at the end of 2005. France, Italy and Spain are expected to have about 10% of households accessing broadband by that point.