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Why European ISPs need partners
As compared with independent Internet service providers, European telcos have certain advantages that helped them gain and hold greater market share than their US counterparts, which were left in the dust by strong independent ISPs such as AOL and EarthLink. The continuing strength of the telcos might deter entrepreneurs from entering the ISP market—but shouldn't. The upcoming round of growth in Internet services will offer new revenue streams for companies that choose their partners wisely.
The take-away: On-line subscription services for newspapers, music, and gaming finally are becoming viable businesses. Operators that want to enter (or survive in) Europe's ISP market should consider partnering with these services, as well as with portals, to share development costs and customers.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
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