TPSA flattens broadband growth
The other 99.8% of the population, however, moves at a much slower pace.
Central and Eastern European nations lag behind Western Europe by at least three years in broadband penetration. And compared to its peers, Poland is lagging.
Hungary, Estonia and Slovenia are the front-runners in the Eastern Europe broadband race with about 1% penetration, according to Svetlana Issaeva, a senior analyst at London-based research firm Pyramid Research. Broadband allows for high-speed Internet and data connections through cable modems, copper phone lines and wireless-based access.
The highest hurdle for most foreign and domestic companies wanting to increase broadband acceptance is TPSA's dominance of broadband services, Issaeva said. The incumbent operator, which provides Internet service, has apparently been loath to open up its broadband over high-speed access phone lines (DSL or ADSL) to ordinary Poles, instead targeting high-end customers with higher prices and thus fatter margins, she said.
"It's trying to keep it all for itself to try to get the most for high-end users," she said. "It's the incumbent's game." A TPSA spokesman did not return e-mailed questions about its broadband strategy by press time.
Issaeva said if Poland ever wants to catch up with Euroland and the US, TPSA would need to push its broadband DSL and ADSL products to new customers as well as begin to sell wholesale services to other companies. In addition, she said, cable and wireless access providers need to publicise their alternative services.
TPSA predicts that by the end of 2004 it will have around 500,000 high-speed Internet users, including 400,000 via ADSL. By June 30, 2002 TPSA had 4,200 ADSL lines, below its target for subscribers. TPSA is also offering a low-speed DSL service which it calls HiS, for Home Internet Solution. Although not a true broadband service, it delivers fixed access on a flat-rate basis but with slow delivery.
However there are severe critics of the steep zł. 800 installation charge.
Analysts consider the company's estimate that it will have 500,000 high speed Internet users with the majority - 400,000 - linked to ADSL by the end of this year, optimistic.
The rate of installation now and in future years would be linked to consumer demand driven by improvements in general living standards.
IT market watchers Pyramid Research said if fees are €35 to €46 a month, only 2% of consumers in region could afford the service.
