Broadband offers lifeline

Report advises VARs to offer added services for SME broadband customers

Resellers could cash in by adding value-added services as more SMEs sign up for broadband connections, according to a report by researcher Analysys.

Adding services improves average revenue per user (ARPU) levels, says the report. It estimates that the market for broadband services in Europe will grow from €1.1bn in 2003 to €10.3bn in 2008.

Margaret Hopkins, the report's author, said: "For large players, scale economies may be a more important route to increased margins, while for small players, increased ARPU levels derived from adding services could provide a lifeline."

Key services for resellers to offer their customers will be firewalls, virus protection and virtual private networks (VPNs). But the report warns that making a success of this market requires multiple partnerships.

Tom Fellowes, sales director at Spitfire Technology Group, said: "I'm not sure that a lot of resellers will feel comfortable offering services such as VPNs. But those that have the skills will find themselves very busy over the next few years."