FILE SHARING IS NO LONGER JUST A PROBLEM FOR RECORD LABELS - BROADBAND SERVICE PROVIDERS ARE BEING SWAMPED WITH FILE-SHARING TRAFFIC(London, U.K. - February 10, 2003) - The latest findings from Jupiter Research, a division of Jupitermedia Corporation (Nasdaq: JUPM), reveal that file sharing activity in Europe is growing at a phenomenal rate, causing serious problems for broadband Internet service providers. The swapping of MP3 music files and in some cases movies, creates huge volumes of data traffic placing a massive burden on broadband service providers with many of them struggling to manage their networks.
Jupiter Research interviewed executives at Europe's leading broadband providers and a quarter of those questioned said that in excess of 75% of their subscribers used file sharing networks at least once a month. Some broadband providers have reported that more than 50% of the traffic on their networks results from file sharing.
Already, a handful of European Internet service providers, including T-Online (Europe's largest) have imposed monthly data limits for broadband subscribers, and Jupiter Research estimates that by the end of the year data limits will be the rule, not the exception. This means that for the first time broadband users will have to start thinking carefully about what they are downloading and how much data they might be using. If they exceed their monthly data limit they will be liable to pay for extra data.
According to Olivier Beauvillian, Analyst at Jupiter Research, "Although not the only factor in driving Internet users to broadband, file-sharing has proven to be broadband's first 'killer application.' As well as being a big problem for record labels and the Hollywood studios alike, Internet service providers are beginning to suffer too - under the heavy weight that file sharing imposes on their networks. Not wanting to take on the file-sharing networks in court, the best solution for broadband service providers to address this issue would be to impose monthly data limits on their subscribers."
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