Euro Broadband Takeup Slows

BRUSSELS, Belgium -- The European Competitive Telecommunications Association (ECTA) has reported a significant slow down in Broadband uptake across Europe, falling from 23% to only 7% growth in the half year period before September 2006. This slowdown comes at a time when once again Europe is seeing the growth of telecommunication monopolies in key countries, a correlation ECTA believes is not coincidental.

The ECTA Broadband Scorecard for Q3, 2006, released today, shows that incumbents have clawed back market share in a number of key markets, including a substantial increase in Europe’s broadband hotspots, Denmark and Finland, as well as in France. Incumbents also maintain control of more than 50% of broadband lines in Spain, Italy, Luxembourg, Greece and Belgium.

Steen Clausen, Managing Director of ECTA, said, “The Scorecard shows that growth has stalled in a number of countries where we have seen the power of the incumbent on the increase, including Denmark and Belgium, which experienced a paltry 3% growth in broadband penetration, and France, which has fallen to 8th place in Europe, well behind the UK. In contrast, in Germany, Deutsche Telekom’s market share dropped below 50% for the first time, corresponding with a surge in growth in broadband penetration.”

Europe includes some of the world’s leading broadband countries. However, its position could be put at risk if regulators do not act to re-enforce competition and open markets, ECTA warned.

Clausen said, “This is extremely disappointing news from some of the countries which have traditionally been at the forefront of Europe’s broadband revolution. Until recently, France was the poster child for broadband with some of the most attractive triple play packages in Europe. It now needs to be vigilant if it is to maintain its position.”

European Competitive Telecommunications Association (ECTA)