The Broadband market in Italy Research Paper Example | Topics and Well Written Essays - 3000 words

The Broadband market in Italy - Research wallpaper ExampleIn the third quarter of 2008 the broadband market subscribers was approximately 18 percent of the population.Italy has systematically been ranked as one of the countries with the lowest broadband penetration in Europe, the country lacked cable and digital subscriber line infrastructure and therefore market penetration was considerably low. The entry of other firms in the industry light-emitting diode into an increase in penetration and in 2005 Italy recorded the highest offset of broadband in Europe. Population evolution rank in Italy have been decreasing over the last several years with current rates near zero. Major cities are densely populated and most of the population lives in flats and blocks that make FTTH and digital subscriber line more appropriate to provide broadband services. Vigevano(2002) pointed out that there were both(prenominal) barriers to the penetration of broadband in Italy and they included digit al divide and lack of competition, this means that in rural area, broadband services were slight profitable and therefore majority of the providers concentrated more in urban area. Government has not typically concerned itself with boost more sophisticated use of the internet such as online transactions, and focus on European ready reckoner Driving Licence(ECDL) provided to teachers, government employees, students this leads to increasing the awareness and skills of individuals.Vigevano(2002) points out that there are some barriers to the penetration of broadband in Italy, some of the factors that he highlighted include lack of capital to improve infrastructure, this hinders the growth of broadband in Italy. ... pointed out that there were some barriers to the penetration of broadband in Italy and they included digital divide and lack of competition, this means that in rural area, broadband services were little profitable and therefore majority of the providers concentrated more in urban area. Government has not typically concerned itself with encouraging more sophisticated use of the internet such as online transactions, and focus on European Computer Driving Licence(ECDL) provided to teachers, government employees, students this leads to increasing the awareness and skills of individuals.Vigevano(2002) points out that there are some barriers to the penetration of broadband in Italy, some of the factors that he highlighted include lack of capital to improve infrastructure, this hinders the growth of broadband in Italy. He also pointed out that there are regulatory issues that pose uncertainty regarding rights another chore is digital divide whereby there is high adoption of broadband in certain area and in others low adoption and therefore firms concentrate only in large cities. According to House (2001) the fake of the S curve depends on the time period and saturation level and that the saturation level is less than 100%, he also states that saturation is driven by both the supply side and select side, saturation level depends on the appropriateness of the technology and Economies of scale reducing prices increasing level of betrothal to peak.Estimated Level of SaturationThe chart below summarises Penetration rate of Broadband in Italy from 2001-2008Diagram 1From the chart it is evident that broadband users(households and business) per 100 individuals has gradually increased over the years, it is also evident that in 2001 to 2002 is the introduction