This report is comprised of 167 statistical tables and covers 19 countries. For those needing high level strategic information and objective analysis on this region, this report is essential reading and gives further information on:

The importance of LLU for competition;
Increasing demand for VoD and triple play services;
The implications of rapidly developing ADSL2+ networks;
The changing face of converged media with widespread triple play services becoming a standard feature in homes;
Future plans, strategies and results of home entertainment carried through broadband;
Governments and municipalities investing in optimum fibre networks to bolster their economic welfare;
Shifting mood throughout Europe to make broadband a Universal Service Obligation.


The substantial growth in broadband in Europe during the last two years has kept several European Union (EU) countries at the top of global league tables, with Iceland, Denmark and The Netherlands having taken over South Korea as leaders in broadband penetration by mid-2006. This growth has been driven by intensifying competition and by regulatory measures to improve competitor access to local loops. The major operators have also offset their eroding voice telephony revenues by investing in IP services, and the progressive development of all-IP networks, notably in the UK, promises further growth in coming years as triple play services bolster saturated markets. The leading broadband markets in early 2006 were Belgium, The Netherlands, Denmark and Sweden, while the UK showed the fastest growth. The main growth driver remains DSL, followed by cable, while fibre has also had an improving footprint in certain markets, notably Scandinavia and Italy. Fibre is likely to take an increasing share of network build as deployment prices fall and governments and municipalities invest in optimum infrastructures to sustain national and local economies. This report presents statistics and analysis on the growth of broadband markets in Europe, together with country forecasts to 2015 based on scenarios assessed on several key factors. It analyses the latest developments in ADSL, cable, and fibre technologies, and examines market conditions, the competitive and regulatory environments, and government policies supporting broadband infrastructure and take-up to the end of the decade and beyond.

Europe’s broadband market continued to show remarkable resilience during 2005, reaching 50-60% growth in some countries. The overall broadband growth rate in 2005 was about 15% per quarter. Slower growth was noticeable in some countries where adoption was already high (Belgium and Sweden) though it continued to grow strongly in The Netherlands;
A wide variety of technical solutions is available for accessing broadband. Satellite, Broadband Powerlines (BPL), fibre, dedicated lines and Wireless Local Loop (WLL) accounted for about 14% of new connections in 2005, while WiMAX may have a strong future following the clarifications on technical protocols at the end of the year. The EC is keen to use its regulatory powers to boost these technologies, promoting inter-platform competition, particularly with BPL, which it considers a potential alternative to cable and DSL;
Increasing competition throughout the region has followed the launch of services by a greater number of alternative operators, predominantly due to improvements in interconnection and access market conditions;
Strong growth in the number of Asymmetrical Digital Subscriber Line (ADSL) connections were largely due to the focus on broadband by incumbent operators, a trend that is likely to continue through 2006 and 2007 as they make up for falling fixed-line revenue;
Local Loop Unbundling (LLU), carrier preselection (CPS) and Wholesale Line Rental (WLR) are increasing competition in the local loop – although in a delayed and piecemeal fashion in many countries. France has proved to be a leader in Europe, following a slow start, while the UK and other countries have strong regulatory backing to expand LLU for competitors;
Fibre optic cable will be the underlying technology to cope with the multiplicity of applications which consumers will demand. Cheaper roll-out prices have made infrastructure commitments more feasible, while municipalities and governments have embraced large-scale networks to promote and secure economic growth;
DSL is likely to remain the dominant platform during the next few years, since it reaches at least twice as many households as cable, and its main backers – the incumbent telcos – have strong financial and infrastructural resources to exploit their existing footprints. Furthermore, they are able to deliver emerging ADSL technologies, such as Very High Data Rate Digital Subscriber Line (VDSL) and ADSL2+, which were rolled out in several European countries by the beginning of 2006, with many more networks being built during the year. By 2008, ADSL2+ may claim 71% of European broadband connections, dwarfing alternatives;
Key players in the provision of 20Mb/s services include Free (Iliad), Wanadoo and neuf Cegetel in France, as well as Telecom Italia’s Alice brand serving Germany, Italy and France. The UK was provisioned with its first 24Mb/s service in early 2006, while Sweden and The Netherlands are leaders in municipal fibre networks;
Consumer demand for high-bandwidth applications - triple play, IPTV, Video-on-Demand, and a range of business and family-based video-sharing tools - will stimulate network roll-outs by incumbents and by new entrants exploiting LLU. Once broadband is released from its PC-based limitations to become the main conduit for home entertainment, broadband penetration will broach the natural 60-65% saturation level and climb towards 85-95% in some markets within ten years, given the right conditions;
The convergence of telecoms and media will further stimulate broadband take-up, as popular programming such as sport events become mainstream. In The Netherlands exclusive TV rights to the Dutch Premier Soccer League are on broadband TV rather than traditional TV, while the BBC is similarly streaming major sports events via broadband. In Italy, Mediaset bought the TV rights to Livorno teams’ football games for the 2007-2010 seasons covering the ADSL and mobile TV distribution platforms.

1. EUROPE’S BROADBAND MARKET
1.1 Overview
1.1.1 Competition the key
1.1.2 Stronger Internet base
1.1.3 European broadband statistics
1.1.4 Broadband delivery
1.1.5 Consumer spend and revenue
1.1.6 Broadband costs
1.1.7 Consumer demand
2. AUSTRIA
2.1 Overview
2.2 Broadband statistics
2.3 Broadband forecasts to 2015
2.3.1 Scenario 1 – stronger broadband subscriber growth
2.3.2 Scenario 2 – weaker broadband subscriber growth
3. BELGIUM
3.1 Overview
3.2 Broadband statistics
3.3 Broadband forecasts to 2015
3.3.1 Scenario 1 – stronger broadband subscriber growth
3.3.2 Scenario 2 – weaker broadband subscriber growth
4. DENMARK
4.1 Overview
4.2 Broadband statistics
4.2.1 Market shares
4.3 Broadband forecasts to 2015
4.3.1 Scenario 1 – stronger broadband subscriber growth
4.3.2 Scenario 2 – weaker broadband subscriber growth
5. FINLAND
5.1 Overview
5.2 Broadband statistics
5.3 Broadband forecasts to 2015
5.3.1 Scenario 1 – stronger broadband subscriber growth
5.3.2 Scenario 2 – weaker broadband subscriber growth
6. FRANCE
6.1 Overview
6.1.1 Market share
6.2 Broadband statistics
6.2.1 Market shares
6.3 Broadband forecasts to 2015
6.3.1 Scenario 1 – stronger broadband subscriber growth
6.3.2 Scenario 2 – weaker broadband subscriber growth
7. GERMANY
7.1 Overview
7.2 Broadband statistics
7.3 Broadband forecasts to 2015
7.3.1 Scenario 1 – stronger broadband subscriber growth
7.3.2 Scenario 2 – weaker broadband subscriber growth
8. GREECE
8.1 Overview
8.2 Government support
8.2.1 E-government infrastructure
8.2.2 DIODOS project
8.3 Broadband statistics
8.4 Broadband forecasts to 2015
8.4.1 Scenario 1 – stronger broadband subscriber growth
8.4.2 Scenario 2 – weaker broadband subscriber growth
9. ICELAND
9.1 Overview
9.2 Iceland’s broadband success factors
9.2.1 Demographics
9.2.2 Infrastructure
9.2.3 Government support
9.3 Broadband statistics
9.4 Broadband forecasts to 2015
9.4.1 Scenario 1 – stronger broadband subscriber growth
9.4.2 Scenario 2 – weaker broadband subscriber growth
10. IRELAND
10.1 Overview
10.2 Delivering access
10.3 Promoting broadband
10.4 Resistance to broadband
10.5 Addressing the problem
10.6 Government networks
10.7 Eircom’s structural separation?
10.8 Broadband statistics
10.9 Broadband forecasts to 2015
10.9.1 Scenario 1 – stronger broadband subscriber growth
10.9.2 Scenario 2 – weaker broadband subscriber growth
11. ITALY
11.1 Overview
11.2 Broadband statistics
11.3 Market share
11.4 Broadband forecasts to 2015
11.4.1 Scenario 1 – stronger broadband subscriber growth
11.4.2 Scenario 2 – weaker broadband subscriber growth
12. LUXEMBOURG
12.1 Overview
12.2 Broadband statistics
12.3 Broadband forecasts to 2015
12.3.1 Scenario 1 – stronger broadband subscriber growth
12.3.2 Scenario 2 – weaker broadband subscriber growth
13. MALTA
13.1 Overview
13.2 Broadband statistics
13.3 Broadband forecasts to 2015
13.3.1 Scenario 1 – stronger broadband subscriber growth
13.3.2 Scenario 2 – weaker broadband subscriber growth
14. NETHERLANDS
14.1 Overview
14.1.1 Wholesale broadband access
14.1.2 Retail broadband access – local loop
14.1.3 Incentives to invest
14.2 Broadband statistics
14.3 Broadband forecasts to 2015
14.3.1 Scenario 1 – stronger broadband subscriber growth
14.3.2 Scenario 2 – weaker broadband subscriber growth
15. NORWAY
15.1 Overview
15.2 Broadband statistics
15.2.1 Market shares
15.3 Broadband forecasts to 2015
15.3.1 Scenario 1 – stronger broadband subscriber growth
15.3.2 Scenario 2 – weaker broadband subscriber growth
16. PORTUGAL
16.1 Overview
16.2 Broadband statistics
16.3 Broadband forecasts to 2015
16.3.1 Scenario 1 – stronger broadband subscriber growth
16.3.2 Scenario 2 – weaker broadband subscriber growth
17. SPAIN
17.1 Overview
17.2 Broadband statistics
17.3 Broadband forecasts to 2015
17.3.1 Scenario 1 – stronger broadband subscriber growth
17.3.2 Scenario 2 – weaker broadband subscriber growth
18. SWEDEN
18.1 Overview
18.2 Government support
18.3 ICT policy
18.4 Broadband in regional Sweden
18.5 Competition
18.6 Broadband statistics
18.7 Broadband forecasts to 2015
18.7.1 Scenario 1 – stronger broadband subscriber growth
18.7.2 Scenario 2 – weaker broadband subscriber growth
19. SWITZERLAND
19.1 Overview
19.2 Broadband statistics
19.3 Broadband forecasts to 2015
19.3.1 Scenario 1 – stronger broadband subscriber growth
19.3.2 Scenario 2 – weaker broadband subscriber growth
20. UNITED KINGDOM
20.1 Overview
20.2 Broadband statistics
20.2.1 Market share
20.3 Broadband forecasts to 2015
20.3.1 Scenario 1 – stronger broadband subscriber growth
20.3.2 Scenario 2 – weaker broadband subscriber growth


Exhibit 1 – Overview of major broadband service providers in Iceland




Table 1 – Europe overview – Broadband lines market share, incumbents and new entrants – October 2005
Table 2 – Europe overview – Broadband lines market share, new entrants – 2004 - 2005
Table 3 – Europe overview – Internet users, growth and penetration – March 2006
Table 4 – Europe overview – PC penetration in Europe – 2004
Table 5 – Europe overview – Broadband access lines and growth – 2002 - 2005
Table 6 – Europe overview – Broadband access growth per 100 inhabitants – 2005
Table 7 – Europe overview – Broadband access lines by type – 2005
Table 8 – Europe overview – Broadband subscribers per 100 inhabitants, by technology – 2005
Table 9 – Europe overview – Growth in broadband subscribers per 100 inhabitants – 2001 - 2005
Table 10 – Europe overview – Broadband access growth per DSL and Cable – 2004 - 2005
Table 11 – Europe overview – Non-DSL broadband access – 2005
Table 12 – Europe overview – Non-DSL retail lines by country – Oct 2005
Table 13 – Europe overview – EU DSL/other retail lines by country – October 2005
Table 14 – Europe overview – Broadband online activities – 2005
Table 15 – Europe overview – Comparative European broadband costs – 2005
Table 16 – Austria – Internet user growth and penetration – 1995 - 2005
Table 17 – Austria – Total broadband subscribers and penetration by access type – 2002 - 2005
Table 18 – Austria – Broadband connections by infrastructure (retail) – 2004 - 2005
Table 19 – Austria – Broadband connections by infrastructure (wholesale) – 2004 - 2005
Table 20 – Austria – Total broadband connections by infrastructure – 2004 - 2005
Table 21 – Austria – Revenue from retail and wholesale broadband connections – 2004 - 2005
Table 22 – Austria – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 23 – Austria – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 24 – Belgium – Internet user growth and penetration – 1995 - 2006
Table 25 – Belgium – Broadband subscribers and penetration (cable modem & DSL) – 2000 - 2005
Table 26 – Belgium – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 27 – Belgium – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 28 – Denmark – Internet users and penetration – 1996 - 2005
Table 29 – Denmark – Internet subscriptions by customer type – 2004 - 2005
Table 30 – Denmark – Market share of Internet subscriptions by type - 2004 - 2005
Table 31 – Denmark – Internet subscriptions by provider – 2004 - 2005
Table 32 – Denmark – Market share of Internet subscriptions by provider - 2004 - 2005
Table 33 – Denmark – Broadband subscribers & penetration per cable modem, xDSL & FWA – 2001 - 2005
Table 34 – Denmark – Broadband DSL service provider market shares by operator – 2004 - 2005
Table 35 – Denmark – Broadband cable service provider market shares by operator – 2004 - 2005
Table 36 – Denmark – Broadband subscribers by alternative technologies – 2005
Table 37 – Denmark – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 38 – Denmark – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 39 – Finland – Internet user growth and penetration – 1995 - 2005
Table 40 – Finland – Total broadband subscribers per segment and penetration – 2000 - 2005
Table 41 – Finland – Broadband penetration by technology – 2004 - 2005
Table 42 – Finland – Non DSL and cable broadband subscribers – 2004 - 2006
Table 43 – Finland – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 44 – Finland – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 45 – France – Internet users and penetration – 1995 - 2006
Table 46 – France – Narrowband subscribers – 1999 - 2004
Table 47 – France – Unbundled lines – 2004 - 2006
Table 48 – France – Market shares of major cable broadband companies – 2004
Table 49 – France – Dial-up Internet traffic by volume and annual change – 2004 - 2005
Table 50 – France – Total Internet subscribers and annual change – 2004 - 2005
Table 51 – France – Internet revenue by access type (€ million) - 1999 - 2005
Table 52 – France – Internet revenue by access type and annual change - 2004 - 2005
Table 53 – France – ARPU by access type and annual change - 2004 - 2005
Table 54 – France – Total broadband subscribers by type – 2000 - 2005
Table 55 – France – Total broadband subscribers and annual change – 2004 - 2005
Table 56 – France – Total broadband subscribers and share of Internet subscribers – 2000 - 2005
Table 57 – France – Cable broadband market shares – 2004
Table 58 – France – Broadband market share – 2005
Table 59 – France – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 60 – France – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 61 – Germany – Internet user growth and penetration – 1991 - 2006
Table 62 – Germany – DSL lines in operation: incumbent and competitors – 2000 - 2005
Table 63 – Germany – Broadband subscribers by access type and market penetration – 2001 - 2005
Table 64 – Germany – Broadband subscribers as share of Internet users – 2002 - 2005
Table 65 – Germany – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 66 – Germany – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 67 – Greece – Total broadband subscribers per segment and penetration – 2004 - 2005
Table 68 – Greece – OTE broadband subscribers – 2004 - 2005
Table 69 – Greece – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 70 – Greece – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 71 – Iceland – Internet user growth and penetration – 1996 - 2005
Table 72 – Iceland – Total broadband subscribers and penetration – 2001 - 2005
Table 73 – Iceland – Proportion of broadband subscribers by access type – 2004 - 2005
Table 74 – Iceland – Internet access by type – 2002 - 2005
Table 75 – Iceland – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 76 – Iceland – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 77 – Ireland – Total broadband subscribers and penetration by access type – 2002 - 2005
Table 78 – Ireland – Narrowband subscribers - 2005
Table 79 – Ireland – Broadband by Internet households – 2005
Table 80 – Ireland – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 81 – Ireland – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 82 – Italy – Internet user growth and penetration – 1991 - 2005
Table 83 – Italy – Total fixed broadband subscribers and penetration by access type – 2002 - 2005
Table 84 – Italy – Broadband penetration by technology – 2004 - 2005
Table 85 – Italy – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 86 – Italy – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 87 – Luxembourg – Internet user growth and penetration – 1995 - 2005
Table 88 – Luxembourg – Total broadband subscribers and penetration – 2001 - 2005
Table 89 – Luxembourg – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 90 – Luxembourg – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 91 – Malta – Dial-up traffic – 2004 - 2005
Table 92 – Malta – Internet users and penetration – 2001 - 2005
Table 93 – Malta – Internet subscribers (Malta NSO) – 2001 - 2005
Table 94 – Malta – Broadband penetration – 2002 - 2005
Table 95 – Malta – Broadband subscribers by access method – 2002 - 2005
Table 96 – Malta – Broadband subscriber growth – stronger market growth scenario – 2005 -2010; 2015
Table 97 – Malta – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 98 – Netherlands – Market share of broadband providers – 2005
Table 99 – Netherlands – Total broadband subscribers (cable modem, xDSL, fibre) – 1999 - 2005
Table 100 – Netherlands – Broadband ISPs - subscribers – Sept 2005
Table 101 – Netherlands – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 102 – Netherlands – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 103 – Norway – Internet user growth and penetration – 1995 - 2005
Table 104 – Norway – Total broadband subscribers and penetration – 1999 - 2005
Table 105 – Norway – Residential/business broadband subscribers – 2002 - 2005
Table 106 – Norway – Broadband households – 2002 - 2005
Table 107 – Norway – Residential/business broadband turnover – 2003 - 2005
Table 108 – Norway – Telenor Internet and broadband subscribers – 2001 - 2005
Table 109 – Norway – Broadband penetration by technology – 2004 - 2005
Table 110 – Norway – Data transmission services, by type and company – 2005
Table 111 – Norway – Telenor turnover market share, transmission capacity – 2003 - 2005
Table 112 – Norway – Operator share of broadband subscribers – June 2005
Table 113 – Norway – Operator share of broadband subscribers – 2003 - 2005
Table 114 – Norway – Telenor broadband subscriber projections – 2006 - 2008
Table 115 – Norway – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 116 – Norway – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 117 – Portugal – Internet user growth and penetration – 1997 - 2005
Table 118 – Portugal – Internet subscribers by access type – 2004 - 2005
Table 119 – Portugal – Evolution of broadband subscribers and annual change by access type – 2004 - 2005
Table 120 – Portugal – Total broadband subscribers by type and penetration – 2000 - 2005
Table 121 – Portugal – Proportion of broadband subscribers by access type – 2004 - 2005
Table 122 – Portugal – Broadband penetration growth by access type – 2004 - 2005
Table 123 – Portugal – Portugal Telecom share of broadband access – 2004 - 2005
Table 124 – Portugal – Data transmission services – 2004 - 2005
Table 125 – Portugal – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 126 – Portugal – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 127 – Spain – Internet user growth and penetration – 1996 - 2005
Table 128 – Spain – Total broadband subscribers by access type and penetration – 2001 - 2005
Table 129 – Spain – Broadband penetration by technology – 2004 - 2005
Table 130 – Spain – Telefónica broadband and dial-up subscribers - 2005 - 2006
Table 131 – Spain – Telefónica wholesale broadband accesses - 2005 - 2006
Table 132 – Spain – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 133 – Spain – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 134 – Sweden – TeliaSonera Internet and broadband subscribers – 2002 - 2005
Table 135 – Sweden – Market share of broadband providers – 2000 - 2004
Table 136 – Sweden – Active subscribers by broadband access – 2000 - 2004
Table 137 – Sweden – Internet and data service revenue and annual change – end user - 2000 - 2005
Table 138 – Sweden – Data communications service revenue and annual change – end user - 2000 - 2005
Table 139 – Sweden – Proportion of Internet revenue by access type - 2000 - 2005
Table 140 – Sweden – Average Internet access monthly revenue and annual change per household – 2000 - 2005
Table 141 – Sweden – Internet user growth and penetration – 1996 - 2005
Table 142 – Sweden – Total Internet subscribers – 1995 - 2005
Table 143 – Sweden – Broadband subscribers by sector – 2004 - 2005
Table 144 – Sweden – Internet subscribers by type and annual change – 2004 - 2005
Table 145 – Sweden – Internet access by type – 2000 - 2005
Table 146 – Sweden – Internet access as proportion of households – 1997 - 2005
Table 147 – Sweden – Leased lines – 2003 - 2004
Table 148 – Sweden – Internet revenue by type and annual change – 2004 - 2005
Table 149 – Sweden – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 150 – Sweden – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 151 – Switzerland – Internet user growth and penetration – 1996 - 2006
Table 152 – Switzerland – Total broadband subscribers and penetration – 2000 - 2005
Table 153 – Switzerland – Broadband penetration by technology – 2004 - 2005
Table 154 – Switzerland – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 155 – Switzerland – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015
Table 156 – UK – Broadband subscribers by operator; BT share– 2004 - 2005
Table 157 – UK – Broadband subscribers by operator; BT share– 2004 - 2005
Table 158 – UK – broadband market overview – 2001 – 2005
Table 159 – UK – Broadband penetration by technology – 2004 - 2005
Table 160 – UK – Total broadband subscribers and penetration by type – 2000 - 2005
Table 161 – UK – Internet access by dial-up and broadband – 2000 - 2006
Table 162 – UK – Internet user growth and penetration – 1995 - 2006
Table 163 – UK – Broadband connections by DSL, cable, LLU – 2001 - 2004
Table 164 – UK – Broadband subscribers and market shares by operator – 2004 - 2005
Table 165 – UK – Broadband service provision; share of subscribers – 2000 - 2004
Table 166 – UK – Broadband subscriber growth – stronger market growth scenario – 2005 - 2010; 2015
Table 167 – UK – Broadband subscriber growth – weaker market growth scenario – 2005 - 2010; 2015