Executive Summary (This is a document excerpt)

Broadband lines in Western Europe grew an impressive 73% between July 2004 and October 2005. Penetration in the Nordics, Belgium, the Netherlands, and Switzerland is far ahead of the other countries. The average European price fell 35%, helping fuel this impressive market growth. And the broadband price premium over dial-up has seen a sharp decline since 2004; broadband is cheaper than dial-up in Finland and the Netherlands, the two countries experiencing the highest market growth and intense competition. Conversely, Spain had the highest broadband price premium and the second-lowest broadband growth. Incumbents across Europe should embrace competition and reduce entry-level broadband prices to push the price premium below 50%. Regulators should worry about consumer interests and broadband retail prices as opposed to broadband wholesale prices.

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