Growth forecast for Ireland’s broadband market
A vital commodity in the business world, the penetration of broadband services in Ireland has already hit 65% and new research has forecast plenty of growth for the market over coming years.
The Irish telecoms markets has been placed under significant pressure in light of the economic issues faced by most of Europe yet has managed to retain its position, with new growth anticipated as the situation improves. The mobile market and dedicated mobile broadband market were said to have contracted previously while fixed broadband subscriptions only grew marginally according to data in the 2013 telecommunications Q2 market report.
Yet, all this is set to end as the arrival of new broadband services helps to prompt growth. The rollout of a 4G network infrastructure from Telefonica was announced in November 2012 whilst more than 200 Irish schools are benefitting from 100Mbps broadband connections as part of a new initiative.
Ireland is already ranked the eighth fastest country for broadband connections in Europe, beating rival nations like the UK by a couple of places, and the introduction of these services is only expected to increase their influence further.
Where will growth come from?
According to an article on The Daily Telegraph, growth for the UK internet market is expected to be generated from increased competition – and in Ireland this is no different. The rivalry between leading broadband providers such as Sky and Virgin Media has meant that broadband providers in Ireland are now eager to secure as much custom as possible – and that means extending their services and their accessibility.
BSkyB, the company behind Sky broadband, has already hit Irish news headlines for buying the UK division of the Telefonica brand and elsewhere their media packages account for 50% of TV revenues in all of Ireland. Their provision of ‘triple play’ options, which combine phone, TV and broadband services, is also named as a potential cause for the increase in internet subscriptions and is something which is also available from their main rival Virgin Media.
Over in the UK, Virgin Media and BT account for the vast majority of the superfast broadband market although Virgin Media’s network only extends across 50% of the country – one potential reason why their average connection speeds are actually behind that found in Ireland.
When will growth be witnessed?
While there is no definitive answer, growth in the internet market is expected to be noted over coming months and years as consumers continue to turn to the internet for many of their basic needs. Sky Ireland have already released a report into consumer trends when it comes to internet surfing, finding that more and more individuals are accessing the net while commuting to work – a revelation which could affect the way services are targeted towards individuals. The growth of the apps market is another area which is expected to fuel growth, with Sky having released a number of exclusive apps to their customers, thus extending their services even further.
