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Plenexis forecasts that UK broadband for business will grow fivefold by 2007, )
Based in Bonn, Germany, Plenexis is European market leader with a 20% share of the market for corporate networks via satellite and says its forecasts run against many accepted views in the industry.
Plenexis believes that by 2007 the UK market for broadband satellite services will be worth 190 million Euros within a total European market of 1.6 billion Euros.
Kai Lauterjung, Plenexis Group Managing Director says that contrary to the views of many players in the telecoms market, Plenexis takes a positive and optimistic view of its business because it believes there is an underlying growth trend in the European satellite communication market.
"It is interesting to see that more than two-thirds of British companies* have told the Institute of Directors that geographical coverage of broadband needs to improve. Broadband delivered by satellite overcomes all problems of geographical reach."
Plenexis is well placed to reap major gains in Europe and the UK over the next few years. Factors such as weak pricing of satellite time, insecurity of contract periods and failure by many companies to provide reliable technology all play to Plenexis' advantage, says Mr Lauterjung.
"We believe this situation will continue for at least the next five years," adds Mr Lauterjung who says that Plenexis turnover is poised to reach 300 million Euros by 2006.
The Plenexis analysis of the European market for satellite broadband services reveals structural change and rapid consolidation taking place. Plenexis is part of the consolidation process because it is currently discussing merger or partnership with many significant telecoms operators in Europe.
The Plenexis forecasts follow closely on a report from the Institute of Directors last week showing that only 10% of British companies feel their broadband needs are met. However, more than 75% say that using broadband will reduce their costs.
More than 66% of companies say that geographical coverage of broadband must improve before there is wider adoption of the technology.
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