Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Connecting Europe at High Speed : National Broadband Strategies {SEC(2004) 599}
Date: 2004-05-12
Institutions: European Commission
Subjects: Internet, information policy, information technology, telecommunications

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.5.2004 
COM(2004) 369 final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE  
AND THE COMMITTEE OF THE REGIONS 

Connecting Europe at High Speed: National Broadband Strategies 

{SEC(2004) 599}

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TABLE OF CONTENTS 

1. 

2. 

2.1 

2.2 

2.3 

3. 

3.1 

Introduction ................................................................................................................ 3 

Broadband perspectives............................................................................................. 4 

What is broadband?...................................................................................................... 4 

Benefits of broadband .................................................................................................. 5 

The role of content, services and applications ............................................................. 6 

Main elements of national broadband strategies .................................................... 6 

Supply-side initiatives.................................................................................................. 7 

3.1.1 

Increasing coverage in under-served areas .................................................................. 7 

3.2 

Demand-side initiatives.............................................................................................. 10 

3.2.1 

Financial Incentives ................................................................................................... 10 

3.2.2 

3.2.3 

Initiatives aiming at increasing usage in the public sector (e-government, e-health 
and e-learning) ........................................................................................................... 10 

Initiatives aiming at connecting public administrations, schools, hospitals and health 
centres (demand aggregation) .................................................................................... 11 

3.2.4 

Initiatives aiming at connecting SMEs ...................................................................... 12 

3.3 

4. 

4.1 

4.2 

4.3 

Common elements of national broadband strategies ................................................. 13 

Growth of broadband .............................................................................................. 14 

Recent developments ................................................................................................. 14 

An international comparison ...................................................................................... 16 

PC penetration............................................................................................................ 17 

4.4. 

The role of competition.............................................................................................. 18 

4.4.1 

Facility-based competition ......................................................................................... 18 

4.4.2  Access competition .................................................................................................... 19 

4.5 

5. 

Price considerations ................................................................................................... 20 

Conclusions ............................................................................................................... 21 

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1. 

INTRODUCTION 

Broadband  plays  a  major  role  in  modernising  economies  and  societies.1  As  an  enabling 
technology, it is at the core of the diffusion of the information society and of the development 
of  information  and  communication  technologies  (ICTs).  These  technologies  in  turn  are  key 
drivers of productivity and growth.2  

Broadband  enables  the  delivery  of  new  advanced  content.  It  promotes  the  development  of 
new services and improved delivery of those that already exist. It allows the re-organisation of 
working  and  production  processes.  All  of  these  developments  bring  significant  benefits  to 
businesses, administrations and consumers.  

The benefits of broadband are widely recognised. All Member States of the Union are already 
exploiting these benefits as they experience significant increases in deployment and take-up. 
This  development,  which  is  largely  market  driven,  is  highly  encouraging.  There  are 
nevertheless obstacles to more rapid progress.  

Some  of  these  obstacles  were  highlighted  in  the  eEurope  2005  Action  Plan3.  eEurope  2005 
aims  at  the  development  and  use  of  advanced  services  running  on  a  secure  broadband 
infrastructure. It sets widespread availability and use of broadband as one main objective to be 
attained by the end of 2005. 

The achievement of that objective is stimulated by public policies that encourage investment 
in broadband infrastructure, applications and services. Indeed all EU-15 Member States have 
now  drawn  up  National  Broadband  Strategies  which  propose  a  series  of  initiatives  to  deal 
with these obstacles and to accelerate the deployment and take-up of broadband.4 Many of the 
new  Member  States  are  also  working  on  national  strategies.  Some  have  already  completed 
them. 

These  strategies  contain  a  wide  array  of  initiatives  both  on  the  supply-side  (infrastructure 
deployment) and on the demand-side (increased usage) of the market. Two key areas of focus 
include  increasing  deployment  in  under-served  areas,  with  public  support  foreseen  in  areas 
where market forces do not deliver the necessary investment, and aggregating demand from 
public administrations. This is in line with the invitation to Member States from the Telecom 
Council  of  March  2004  “to  prepare  and  implement  national  broadband  strategies,  with  a 
view  to,  inter  alia,  connecting  all  public  administrations  to  broadband  by  2005  and 
proposing,  where  appropriate,  digital-divide  quick-start  projects,  using,  where  appropriate, 
existing financial instruments such as structural funds, so as to increase broadband coverage 
of under-served areas”. It also conforms to the priorities highlighted by the Growth Initiative5 
endorsed by Heads of State and Government in December 2003. 

1 

2 

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4 
5 

‘Broadband’  refers  to  high-speed  ‘always-on’  connections  to  the  Internet  that  support  the  delivery  of 
innovative content and services. Compared to traditional narrowband connections, broadband access is 
immediate  and  large  volumes  of  data  can  be  almost  instantly  transmitted,  reducing  waiting  time  and 
improving efficiency for users. 
Communication “Connecting Europe at High Speed: Recent Developments in the Sector of Electronic 
Communications”, COM(2004) 61. 
COM(2002) 263. 
Presidency Conclusions of the 2003 Spring European Council, par. 38. 
COM(2003) 690. 

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The aim of this Communication is to provide an overview of broadband developments and of 
national  broadband  strategies  drawn  up  by  the  EU-15  Member  States  following  the 
commitment they made at the 2003 Spring European Council6. The present Communication 
therefore focuses on the situation in the EU15 and proposes to extend that commitment to the 
new Member States.  

The  overview  is  developed  in  three  parts.  The  first  part  (Section  2)  looks  at  technological 
developments,  the  nature  of  broadband  benefits  and  the  role  of  content,  services  and 
applications.  The  second  (Section  3)  provides  an  overview  of  the  national  broadband 
strategies,  identifying  the  main  supply  and  demand-side  initiatives.  A  summary  of  the 
strategies can be found in the Staff Working Paper7 accompanying this Communication. The 
third part (Section 4) analyses the growth of broadband in the European Union and links it to 
the  role  of  competition  within  an  appropriate  regulatory  environment.  Section  5  provides 
overall EU-level policy. 

2. 

BROADBAND PERSPECTIVES 

Compared to traditional narrowband connections, broadband changes the overall presentation 
of the Internet, moving from slow and often user-unfriendly text format, to a fast, colourful 
system  combining  video,  animations  and  sound.  Connections  are  immediate  and  large 
volumes of data, notably video/graphical content, can be almost instantly transmitted. 

2.1 

What is broadband? 

The term ‘broadband’ is commonly used to describe Internet connections that are ‘always on’ 
and that provide a speed which is significantly faster than dial-up connections, supporting the 
delivery  of  innovative  content,  applications  and  services.  Most  current  definitions8  link 
broadband to its transmission capacity. However, as speed evolves with the development of 
bandwidth demanding applications, the definition may quickly become obsolete.  

For the purpose of this report, broadband will refer to a wide range of technologies that have 
been  developed  to  support  the  delivery  of  innovative  interactive  services,  equipped  with  an 
always-on  functionality,  providing  broad  bandwidth  capacity  that  evolves  over  time,  and 
allowing the simultaneous use of both voice and data services.  

Broadband is already available in national and international backbone networks through fibre 
optic  links  with  very  large  capacity.  However,  infrastructure  needs  to  be  enhanced  to  bring 
high-speed  services  to  residential  users  and  small/medium  businesses  by  upgrading  or 
building  infrastructure  to  each  premise.  The ‘broadband  bottleneck’  commonly  refers  to  the 
last-mile connection to the final user.  

There are a variety of technology options with different characteristics that may be used for 
this  purpose,  exemplifying  the  convergent  nature  of  broadband  communications.  A  short 

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8 

Full broadband data for new Member States will only become available at a later date. 
Commission Staff Working Paper – Annex to “Connecting Europe at High Speed: National Broadband 
Strategies”, SEC(2004) 599. 
Definitions  of  broadband  vary  widely.  According  to  ITU  Recommendation  I.113,  broadband  means 
transmission  capacity  that  is  faster  than  primary  rate  ISDN.  The  FCC  considers  broadband  to  mean 
speeds in excess of 200 kb/s, and the OECD a service with downstream capacity of at least 256 kb/s. 

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description  of  available  technologies  can  be  found  in  Annex  1  of  the  Staff  Working  Paper 
complementing this report.  

Currently, broadband access is mostly offered via legacy infrastructure, such as the telephone 
copper  network  using  DSL9  technology  and  cable  TV  networks  using  cable  modems. 
Developments  in  DSL  and  cable  modem  deployment  are  rapid,  as  they  result  from  the 
upgrading  of  existing  networks.  Broadband  access  can  also  be  offered  over  new 
infrastructure,  both  fixed  and  wireless.  The  advantage  of  new  platforms  is  that  they  offer 
almost  unlimited  bandwidth  (fibre  optic),  flexibility  (WLAN10),  coverage  (satellite),  and 
access on the move (3G11 and beyond). Wireless technologies, which require radio spectrum 
to  operate,  are  increasingly  emerging  as  attractive  alternatives  for  the  coverage  of  rural  and 
remote areas, where the upgrading of existing infrastructure can be particularly costly. 

DSL and cable modems are expected to remain the dominant platforms in the short to medium 
term,  as  new  infrastructure  requires  a  longer  period  for  deployment.  Access  networks  are 
likely  to  converge  to  similar  architectures,  with  fibre  coming  increasingly  close  to  the 
premises, and high-speed cable, DSL, wireless links, or fibre itself connecting the final user. 

In the future, various technologies are expected to coexist. They will both compete with one 
in  hybrid 
another  (facility-based  competition)  and  complete  each  other,  resulting 
technological solutions expected to facilitate widespread coverage.  

2.2 

Benefits of broadband 

Member  States  have  designed  national  broadband  strategies  to  accelerate  coverage  and 
stimulate  take-up  because  of  the  substantial  benefits  broadband  can  offer.  Broadband  opens 
the  way  to  the  creation  of  new  markets  through  the  development  of  increasingly  interactive 
applications  and  new  high-quality  services.  Beyond  the  emergence  of  new  multimedia 
applications,  a  wide  range  of  services  is  expected  to  grow  in  parallel  with  the  take-up  of 
broadband, delivering new economic and social benefits. 

Broadband  is  an  enabling  technology.  Its  benefits  are  realised  through  the  delivery  of 
advanced  applications  and  services  expected  to  bring  about  productivity  gains  both  for 
businesses and public administrations. e-commerce and e-business, for example, become more 
convenient.  They  allow  business  deals  to  be  concluded  fast  and  reshape  the  supply  chain. 
Distance  education  and  learning  are  stimulated  through  real-time  services,  resulting  in  the 
upgrade  of  skills,  improved  human  capital  and  life-long  learning.  In  healthcare,  high-speed 
Internet  access  allows  diagnosis  and  patient  treatment  to  be  carried  out  independently  of 
geographical location. In the context of e-government, broadband facilitates the on-line supply 
of existing and new public services. It improves the efficiency of public administrations and 
facilitates  contacts  between  citizens  and  government.  Finally, 
teleworking  and 
videoconferencing  have  become  real  and  practical  options.  Benefits  of  broadband  play  a 
crucial role in promoting progress towards an inclusive knowledge-based economy and ensure 
growth through improved competitiveness.  

9 
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Digital Subscriber Line. 
Wireless Local Area Networks. 
Third Generation Mobile Communications. 

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2.3 

The role of content, services and applications 

The  value-added  of  broadband  depends  on  the  applications  it  enables,  the  content  it  makes 
accessible,  and  the  way  it  is  effectively  used.  Like  all  networks,  however,  broadband  is 
characterised by the ‘chicken-and-egg’ problem. On the one hand, demand for broadband will 
lag as long as innovative  applications, services and content are not developed. On the other 
hand,  there  will  be  no  real  push  for  new  applications,  services  and  content  as  long  as  the 
supporting 
is  not  sufficiently  deployed.  The  complementary  role  of 
infrastructure and content development was highlighted in eEurope 2005 and is reflected by 
the policy mix proposed by national broadband strategies. In this context, several important 
issues remain to be addressed. 

infrastructure 

The  first  relates  to  the  fact  that,  while  the  increased  availability  of  online  music,  films,  and 
other  multimedia  content  improves  the  attractiveness  of  broadband,  it  also  worries  content 
producers as peer-to-peer technologies can facilitate the violation of copyright laws. There is 
a broad consensus that technologies to manage digital rights (DRM) help to establish the right 
incentives for all stakeholders, including a secure environment for ensuring remuneration of 
right-holders, payment for online content, prevention of illegal copying, and preservation of 
consumers rights and privacy. DRM technologies are key to the development of new business 
models  that  minimise  risks  and  costs  faced  by  content  providers  when  bringing  content 
online.  

Two  other  issues  are  security  and  interoperability.  The  ‘always-on’  feature  of  broadband 
increases  the  vulnerability  of  networks  and  of  the  information  transmitted  on  them.  Fully 
interactive applications, including in the field of public services, require an adequate level of 
confidence in areas such as identity management or e-payment.  

The convergent nature of broadband technologies reinforces issues of interoperability. Users 
may  want  to  access  the  same  digital  services  and  content  in  a  variety  of  situations  and 
locations, using different devises (e.g. PCs, 3G or digital television) and network connections. 
layers  (networks,  devices  and  services). 
Interoperability 
Interoperable  solutions  at  all  levels  would  facilitate  the  development  of  innovative  content 
and  services  that  can  be  delivered  on  all  platforms.  They  would  also  enhance  further 
deployment of broadband services and stimulate increased usage. These issues are addressed 
in the framework of eEurope 2005 and its current update following the mid-term review of the 
Action Plan12.  

therefore  concerns  various 

3. 

MAIN ELEMENTS OF NATIONAL BROADBAND STRATEGIES 

Following  the  commitment  made  at  the  2003  Spring  European  Council,  all  EU-15  Member 
States  have  designed  coherent  plans  indicating  objectives  and  relating  roadmaps.  All 
strategies  recognise  the  primary  role  of  the  market  for  broadband  deployment.  They  also 
recognise the role of public policy in complementing the effective functioning of the market, 
addressing  both  the  supply  and  the  demand  side  to  stimulate  a  virtuous  circle  whereby 
development  of  better  content  and  services  depends  on  infrastructure  deployment  and  vice-
versa.  Within  this  framework,  the  main  initiatives  considered  by  the  strategies  concern  the 
need  to  increase  broadband  deployment  in  under-served  areas  and  to  stimulate  demand 

12 

eEurope 2005 Action Plan: An Update, COM(2004) 380. 

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through  financial  incentives,  aggregation  of  public  demand,  and  increased  usage  by 
administrations,  schools,  health  centres  and  SMEs.  Devising  and  implementing  effective 
policy instruments to correct market failures or complement the action of market forces is a 
complex task. This report does not aim to carry out an assessment of the appropriateness of 
these  initiatives.  Rather,  it  aims  to  provide  an  overview  of  key  characteristics  of  these 
initiatives,  describing  the  debate  underlying  the  various  issues  and  highlighting  some 
examples. National strategies are summarised in Annex 2 of the accompanying Staff Working 
Paper.  

3.1 

Supply-side initiatives 

Supply-side initiatives directly impact infrastructure deployment. In this context, all Member 
States  highlight  the  importance  of  a  competitive  environment  enhanced  by  convergence  of 
alternative  platforms  and  by  the  implementation  of  the  new  regulatory  framework  for 
electronic communications.  

Competition and faster deployment or upgrading of infrastructure are mainly taking place in 
densely populated areas. Less populated areas are characterised by the presence of one single 
service  provider,  and  some  of  the  more  remote  and  rural  areas  are  currently  excluded  from 
broadband deployment. Consequently, most strategies pay particular attention to the need for 
increased coverage in areas where market forces do not deliver the necessary investment. 

3.1.1 

Increasing coverage in under-served areas 

The  benefits  of  broadband  highlighted  in  section  2.2  are  particularly  significant  for  remote 
and  rural  areas,  as  improved  communication  systems  can  address  a  variety  of  challenges 
posed by distance. Broadband allows people to communicate and share information regardless 
of  their  physical  location.  Improved  interactivity  enables  citizens  located  in  those  areas  to 
participate  more  actively  in  the  social  and  democratic  life.  Broadband  improves  their  living 
standards by bridging distance, facilitating healthcare, education and access to public services.  

However, growth in broadband connections is mainly taking place in urban areas (Figure 1). 
In a market-oriented environment, operators may not find it profitable to invest and upgrade 
or roll-out infrastructure in areas where expected demand is insufficient to ensure a positive 
return on investment. This may occur in scarcely populated areas or where the distance from 
the exchanges to the final user is too great. Public funding in under-served areas is frequently 
considered necessary to provide incentives and stimulate investment. 

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Figure 1 - DSL and cable m odem  coverage in the EU 15
Decem ber 2003

d
e
r
e
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a
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100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

National

Urban

Suburban

Rural 

Source: IDATE

DSL

Cable

NOTE:

Calculations are based on the follow ing definitions

Urban areas: 

areas w ith population density > 500 inhabitants/Km²

Suburban areas: 

areas w ith population density betw een 100 and 500 inhabitants/Km²

Rural:

areas w ith population density < 100 inhabitants/Km²

 Coverage: percentage of population in each area depending on sw itches equipped for DSL (include 

those living too far aw ay from the sw itch to be reached) and/or living in houses passed by 
an upgraded cable. 

The scope for public intervention in under-served areas was emphasised in eEurope 2005 and 
reiterated by the European Initiative for Growth in December 2003. The initiative announces 
‘Digital-Divide  Quick-Start  projects’  to  accelerate  broadband  deployment  in  under-served 
areas through a technology-neutral approach. Structural Funds and funding from the European 
Investment Bank can be used for this purpose on the basis of the “Guidelines on criteria and 
modalities  of  use  of  Structural  Funds  for  electronic  communications”13,  published  by  the 
Commission  in  July  2003.  The  guidelines  are  based  on  competition  rules  and  on  the  new 
regulatory  framework  to  ensure  that  public  support  does  not  distort  competition.  In  this 
respect,  in  the  absence  of  market  incentives  to  invest,  public  funding  of  open  access 
infrastructure, defined according to technological neutrality and managed by an independent 
entity, appears to be the solution most conducive to effective competition. The Commission 
has also set up a Digital Divide Forum to analyse broadband issues and will report on its work 
in September 2004, as announced in the White Paper on Space14. 

In developing public support in under-served areas, many Member States have undertaken a 
detailed mapping of infrastructure availability. The mapping may serve three purposes: (i) it 
identifies  areas  characterised  by  market  failure;  (ii)  it  allows  a  clear  assessment  of  current 
needs;  and  (iii)  it  provides  a  baseline  against  which  to  assess  progress  in  broadband 
deployment.  Member  States  already  disposing  of  detailed  mappings  are  Denmark,  Finland, 
France, Greece, Italy, and Sweden. The Spanish broadband strategy announces the launch of a 

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Available at http://europa.eu.int/comm/regional_policy/sources/docoffic/working/sf2000_en.htm. 
White  Paper:  Space:  A  new  European  frontier  for  an  expanding  Union.  An  Action  Plan  for 
implementing  the  European  Space  policy,  COM(2003)  673.  More  details  can  be  found  in  the 
Communication eEurope 2005 Action Plan: An Update, COM(2004) 380. 

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study  to  assess  availability  of  infrastructure  throughout  the  country  as  the  first  step  of  a 
detailed roadmap to increase coverage. 

The  definition  of  market  failure  and  of  under-served  areas  justifying  public  support  varies 
across Member States. Some countries consider public intervention acceptable in areas where 
broadband infrastructure is not available. Others extend the concept to areas where only one 
provider  is  operating.  In  this  view,  public  intervention  aims  at  facilitating  new  entry  and 
enhancing competition.  

In many countries, municipalities have entered the wholesale broadband market by rolling out 
fibre optic networks. Municipal efforts have raised the concerns of commercial operators, but 
have  often  stimulated  private  investment  in  response  to  the  competitive  pressure15.  By 
ensuring structural separation between wholesale and resale provision of services, municipal 
wholesale  networks  potentially  stimulate  competition  in  services.  On  the  contrary,  some 
countries  believe  that  municipal  wholesale  networks  may  distort  commercial  incentives  to 
invest  and  waste  public  resources,  reaffirming  the  primary  responsibility  of  the  market  to 
ensure broadband availability. 

To  facilitate  broadband  deployment  in  under-served  areas,  local  initiatives  are  often 
accompanied by demand-aggregation policies, as described in the next section.  

Italy is considering the opportunity of introducing supply-side financial incentives to facilitate 
deployment  in  remote  and  rural  areas,  on  the  basis  of  a  classification  of  communities 
according to per-capita average income, population density and diffusion of ICT skills. 

Finally, some strategies underline the importance of emerging technologies such as WLAN, 
satellite,  powerline  communications  and  3G.  Italy  underlines  the  role  3G  may  play  also  by 
interconnecting  to  the  terrestrial  digital  network  and  providing  the  return  channel  for 
interactive services.  

The UK is experiencing the launch of services by relatively small wireless service providers 
that tend to focus on a limited number of rural communities. At the same time, incumbents 
such as France Telecom and Telekom Austria are conducting trials using WLAN to provide 
broadband in areas where DSL upgrades would not be profitable. 

The Irish Metropolitan Area network: This initiative involves the construction of high-speed fibre-
optic rings linking the key business districts in 19 towns and cities across the country in a partnership 
with  local  and  regional  government  organisations.  These  Metropolitan  Networks  will  provide 
broadband to businesses, schools, hospitals and private users on an open-access basis. More than € 64 
million  have  been  committed  to  the  first  phase  of  this  programme  in  2003-2004,  with  infrastructure 
expected  to  be  operational  in  the  second  half  of  2004.  A  neutral  Management  Service  Entity  will 
manage the networks. This initiative is further complemented by € 140 million of Exchequer Funding 
to be invested until 2007 to provide open access broadband infrastructure in all cities and towns with a 
population  greater  than  1,500  inhabitants,  with  a  Group  Broadband  Scheme  to  facilitate  smaller 
communities to pool their broadband demands and ensure connectivity from a range of providers. 

15 

In  many  countries,  legislation  allows  the  existence  of  municipality  wholesale  networks.  The  new 
regulatory  framework  would  require  that  access  to  such  networks  is  available  at  non-discriminatory 
conditions. In France, in 2003 the French Parliament went further and proposed a bill introducing the 
opportunity for local municipalities to operate networks when private alternatives are lacking. 

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Other  examples  include  Sweden,  where  public  support  may  concern  different  levels  of  the 
network  hierarchy  (national  backbone,  regional  and  local  networks);  France,  which  is 
planning  the  installation  of  optical  networks  on  a  regional  or  urban  scale  to  enhance 
competition;  Greece,  proposing  Public-Private  Partnerships  to  build  LANs  in  under-served 
areas; Finland, drawing up national guidelines for regional and local governments on the use 
of public funding.  

In conclusion, most Member States support the deployment of broadband in remote and rural 
areas.  However,  the  use  of  public  funds  may  distort  competition  and  affect  future  market 
developments, in particular when some level of private investment is already undertaken. The 
Guidelines  on  the  use  of  Structural  Funds  in  electronic  communications  provide  general 
criteria to minimise these risks. They can therefore be applied to all funding initiatives. 

3.2 

Demand-side initiatives 

Governments  can  play  an  important  role  in  encouraging  broadband  deployment  through 
policies  that  stimulate  demand.  These  policies  may  consist  of  financial  incentives,  of 
improving government usage through e-government, e-health and e-learning activities and the 
development  of  innovative  public  services,  educating  children  to  the  use  of  the  new 
technologies, ensuring a secure environment, etc. 

3.2.1  Financial Incentives 

Financial  incentives  are  used  in  Austria,  Italy  and  Sweden  and  take  the  form  of  fiscal 
subsidies for broadband connections.  

Italy: The 2003 budget law foresaw a subsidy of € 75 for residential and business broadband access, 
with  total  funding  of  €  27  million.  These  funds  have  enabled  more  than  350,000  new  connections. 
Because of the result, the 2004 budget law has earmarked another € 30 million.  

The  effectiveness  of  financial  incentives  in  directly  stimulating  broadband  take-up  could  be 
improved,  taking  into  account  that  financial  incentives  may  have  a  high  deadweight  effect 
unless they are targeted at those social groups that cannot afford the use of new technologies.  

Italy considers that low PC penetration may be acting as a constraint on Internet use and has 
set up incentives to address this restraint too. Section 4.3 looks at PC penetration and Internet 
use more in detail. 

3.2.2 

Initiatives aiming at increasing usage in the public sector (e-government, e-health 
and e-learning) 

All  Member  States  support  the  development  of  on-line  public  services  to  improve  the 
efficiency  of  the  public  sector.  In  turn,  development  of  innovative  services  stimulates  user 
demand  facilitating  infrastructure  deployment.  eEurope  2005  has  highlighted  the  role  of 
broadband-enabled services to stimulate use, although development of innovative services is 
primarily up to the market.  

Most  national  strategies  attribute  particular  importance  to  the  area  of  e-government. 
Increasingly interactive services potentially improve the interaction between citizens and the 
public  administration,  facilitating  the  development  of  demand-led  systems  through  more 
innovative  and  personalised  public  services.  Broadband-enabled  e-government  may  also 

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improve  the  efficiency  of  administrations  by  changing  management  patterns  and  improving 
organisational  performance.  All  Member  States  are  undertaking  advanced  e-government 
initiatives within the eEurope framework. 

Broadband  has  also  led  to  revolutionary  developments  in  the  medical  field.  It  enables 
collaboration  among  different  organisations  and  health  professionals,  and  it  provides  the 
necessary  infrastructure  for  bandwidth-intensive  applications  such  as  telemedicine  (for 
example  tele-consultations,  telemonitoring,  and  telecare,  either  at  home  or  in  hospital). 
Telemedicine enables improved access to healthcare and better quality medical care to those 
who  cannot  visit  a  doctor,  as  well  as  early  diagnoses  and  medical  treatment.  The  French 
national  strategy  encourages  the  constitution  of  expert  networks  to  stimulate  sharing  of 
medical dossiers. The German strategy sets targets for the development of patients’ electronic 
medical  records.  In  Belgium,  the  electronic  identity  card  will  soon  be  available  for  the 
medical practitioners and will give access to electronic health records. 

In the area of education, distance learning is one of the better-known broadband applications. 
Students  from  any  geographical  location  can  take  advantage  of  opportunities  in  all 
educational  institutions,  following  courses  that  are  flexible  to  their  individual  needs, 
interacting  with  professors  in  real-time  and  participating  in  group  projects  with  participants 
located in different areas. In Denmark, the electronic network Sektornet provides broadband 
access  to  the  Internet  and  a  number  of  services  such  as  training,  technical  support, 
videoconferencing, etc. for primary and secondary schools. 

Portugal, the e-U initiative: Every University in Portugal will be able to offer their students online 
services  and  information  with  fast  Internet  access  everywhere  on  campus.  The  e-U  Initiative  is  a 
national  programme,  developed  under  a  public-private  partnership  model,  covering  57  university 
institutions and includes: the installation of Wi-Fi systems in all campuses thanks to the deployment of 
Wi-Fi access, with roaming; wireless laptops at special prices (with the help of five major Portuguese 
banks, fourteen laptop suppliers, nine broadband ISPs and other hardware  and software  companies); 
online  university  services;  development  and  supply  of  scientific  and  educational  contents  online; 
training  of  university  academic  and  administrative  staff;  financial  support  to  low-income  students; 
laptop  awards  to  the  best students.  A  national  advertising  campaign,  including  TV,  was  launched  to 
promote  the  initiative  and  the  brand  e-U.  This  project  benefits  from  financial  support  from  the 
European Union and is linked to the Online Scientific Library Project, which places more than 3,500 
international scientific journals online. 

3.2.3 

Initiatives  aiming  at  connecting  public  administrations,  schools,  hospitals  and 
health centres (demand aggregation) 

To  realise  the  benefits  of  broadband-enabled  services,  public  administrations,  schools  and 
health  centres  need  to  be  connected.  The  aggregation  of  public-sector  demand  increases 
certainty  of  expected  revenues  facilitating  investment.  It  is  particularly  important  in  under-
served areas accompanying supply-side initiatives to foster deployment. If collective demand 
within  a  community  is  not  sufficient,  municipalities  often  create  networks  and  consolidate 
aggregation across several communities.  

Many  national  strategies  include  demand  aggregation  initiatives,  although  strategies  do  not 
always describe the steps needed for implementation. Connectivity of schools, hospitals and 
public administrations varies across countries, with the Nordic countries featuring broadband 
connections  for  more  than  90%  of  institutions.  e-procurement  is  often  mentioned  as  a  key 
demand-aggregation  tool,  fostering  connectivity  for  all  public  administrations.  One  well 

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specified  initiative  is  the  Greek  Syzefxis  project,  which  earmarks  €  71.5  million  to  provide 
broadband to all public buildings on the basis of demand aggregation. 

Demand aggregation may occur at various government levels. Initiatives at the central level 
allow  a  better  exploitation  of  economies  of  scale.  However,  if  not  carefully  designed,  they 
may create or reinforce dominant positions, for example by limiting the number of providers 
at  the  national  level.  The  Netherlands  in  particular  experimented  with  various  demand 
bundling schemes and found that demand aggregation at national level within a sector has led 
to high prices. The Netherlands points to cross-sectoral demand bundling at the regional level 
as the most promising solution. 

The UK Broadband Aggregation Project: The UK national broadband strategy is articulated around 
demand  aggregation.  £ 1 billion has  been  allocated  to  increase  broadband  connectivity  in the  public 
sector  until  2006,  including  plans  to  deliver  2Mbps  and  8Mbps  respectively  to  all  primary  and 
secondary  schools;  256  kb/s  to  all  GP  practices  and  at  least  2Mb/s  to  all  hospitals  and  other  Health 
Authorities;  the  Criminal  Justice  System  will  provide  ICT  infrastructure  across  the  major  criminal 
justice  organisations.  The  Project  will  set  up  9  Regional  Aggregation  bodies  and  a  National 
Aggregation body to aggregate public sector demand and take it to the market. Demand aggregation 
occurs at the regional level, and Regional Development Agencies are key partners to the project.  

3.2.4 

Initiatives aiming at connecting SMEs 

ICTs  are  strategic  tools  for  businesses.  The  Communication  “Connecting  Europe  at  High 
Speed:  Recent  Developments  in  the  Sector  of  Electronic  Communications”  highlighted  the 
macroeconomic  impact  of  ICTs  on  productivity  and  growth.  It  emphasised  the  need  for 
businesses  to  complement  investment  in  ICTs  with  changes  in  working  processes  and 
upgrading of skills.  

Broadband  has  the  potential  to  transform  businesses  and  the  way  they  work,  enabling 
companies  to  become  more  productive  and  innovative.  While  most  large  companies  are 
connected to broadband, SME connectivity is lagging behind (Figure 2)16. The slow take-up 
of broadband by European SMEs is often attributed to the shortage of appropriate applications 
and  to  the  lack  of  awareness  by  SMEs  of  the  potentials  of  ICTs  for  their  performance. 
Broadband  strategies  illustrate  initiatives  that  are  undertaken  within  the  framework  of  e-
business. They aim at raising awareness and at stimulating demand. To encourage SMEs to 
take advantage of the broadband benefits, France highlights the importance of stimulating the 
creation  of  applications  specifically  targeted  at  SMEs.  In  this  context,  DRM  systems  and 
secure payments play an important role.  

16 

More data on connectivity of SMEs can be found in the latest e-Business W@tch report to be found at 
http://www.ebusiness-watch.org/marketwatch/resources/E-Business-2003.pdf. 

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Figure 2 - SMEs and Broadband 
1st quarter 2003 

EU13 average* 

d
e
t
c
e
n
n
o
c
s
E
M
S
%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

BE

DK

DE

ES

IE

IT

LU

NL

AT

PT

FI

SE

UK

Note: SMEs defined as enterprises w ith 10-249 employees. 
* Arithmetic average

Source: European Com m ission (Eurostat)

Denmark: The Ministry of Science and Technology has launched an initiative to stimulate take-up of 
broadband by SMEs. The programme will provide SMEs with training and assistance through private 
consultants, helping them to overcome practical problems and increase competency related to starting 
out  in  eBusiness.  Consultants,  trade  associations  and  regional  business  organisations  will  help  60 
SMEs realise their first gains from eBusiness, e.g. establishing an electronic catalogue for eBusiness 
portals. The experience and good practice stemming from the 60 pilot projects will then be shared with 
other Danish SMEs. 

3.3 

Common elements of national broadband strategies 

The  analysis  of  broadband  strategies  reveals  that  proposed  initiatives  are  based  on  similar 
principles,  suggesting  that  broadband  deployment  in  the  EU  is  led  by  a  common  approach. 
These principles are: 

•  Recognition of the primary role of the market in the expansion of broadband. 

•  The  role  of  public  policy  in  complementing  the  effective  functioning  of  the  market, 
addressing  both  the  supply  and  the  demand  side  to  stimulate  the  virtuous  circle  where 
development of better content and services depends on infrastructure deployment and vice-
versa. 

On the supply side: 

•  The  importance  of  competition  and  convergence  across  alternative  platforms,  to  be 
stimulated  through  the  consistent  implementation  of  the  new  regulatory  framework  for 
electronic communications. 

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•  The role of public policy in extending coverage of under-served areas, with particular care 
not  to  distort  competition,  nor  to  inhibit  private  investment,  and  on  the  basis  of  a 
technology-neutral approach. 

•  The  need  for  an  assessment  of  broadband  availability  and  take-up  through  a  continued 

monitoring of the market. 

•  The  importance  of  R&D  for  the  development  of  next-generation  broadband,  cost 

reductions and innovative applications and services. 

On the demand side: 

•  The  relevance  of  demand-aggregation  policies  that  improve  certainty  for  investors  and 

increase use by public administrations, educational and healthcare establishments. 

•  The  importance  of  the  development  of  broadband-enabled  open  and  interoperable 

applications and services for businesses and administrations. 

•  The  need  of  overcoming  barriers  to  the  development  of  new  innovative  content, 

progressing in areas such as IPR protection, DRM systems and m-payments. 

•  The role of security and trust to stimulate broadband use. 

4. 

GROWTH OF BROADBAND 

As reflected in the national strategies, Member States are strongly supportive of the objective 
of widespread broadband availability. This support has built up over the years and is the result 
of  emerging  policy  efforts,  including  eEurope  and  the  development  of  a  pro-competitive 
regulatory environment. As a result, broadband markets  have  grown over the last two years 
and markets are becoming more competitive. 

Moreover, the structure of the industry is being affected by convergence, as evidenced by the 
emergence of TV over ADSL and Voice over the Internet Protocol. The boundaries between 
telecom  operators,  equipment  manufacturers,  broadcasters  and  content  producers  have 
blurred,  resulting  in  new  forms  of  competition  with  the  potential  to  deliver  better  services, 
lower prices and more choice. 

4.1 

Recent developments 

Deployment and take-up of broadband are increasing at a fast pace in the European Union. At 
the  end  of  2003  there  were  22.8  million  connections,  an  increase  of  almost  100%  over  one 
year  (Figure  3).  All  Member  States  are  experiencing  a  rapid  expansion  of  the  broadband 
market,  but  disparities  are  still  significant.  The  average  EU  penetration  rate  (defined  as 
number of subscribers as a percentage of total population) increased from less than 3.4% at 
the end of 2002 to 6% at the end of 200317.  

17 

Effective usage is greater than this number, as one subscriber may correspond to multiple users. 

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 Figure 3 - Broadband take-up in the EU 15 
January 2003 - January 2004

)
n
o
i
t
a
l
u
p
o
p

f
o
e
g
a
t
n
e
c
r
e
P

(
n
o
i
t
a
r
t
e
n
e
p
d
n
a
b
d
a
o
r
B

14%

12%

10%

8%

6%

4%

2%

0%

BE

DK

DE

EL

ES

FR

IE

IT

LU

NL

AT

PT

FI

SE

UK EU 15*

Note:  Penetration rate: number of subscribers as a percentage of population

*Average of 15 Member States

Jan. 03

Jan. 04

Recent  broadband  developments  are  mainly  driven  by  DSL  technologies  (Figure  4).  This  is 
particularly due to the wide reach of Public Switched Telephone Networks (PSTN). However 
historically, where available, cable networks were upgraded to broadband capabilities first. In 
January  2004,  DSL  represented  74%  of  total  connections  and  cable  reached  22%.  Other 
technology  platforms  are  still  in  the  early  stages  with  few  subscribers  but  increasing  their 
presence. 

Figure 4 -   Broadband take-up by technology in the EU 15 
July 2002 - January 2004

25.000.000 

20.000.000 

15.000.000 

10.000.000 

5.000.000 

s
r
e
b
i
r
c
s
b
u
s
f
o
r
e
b
m
u
N

Total broadband

DSL 

Cable

Other technologies

0 

July 02 

Source: Commission Services

January 03

July 03

January 04 

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4.2 

An international comparison 

The  European  Union  as  a  whole  was  not  a  front  runner  in  the  development  of  broadband. 
More  recent  trends  indicate,  however,  that  the  gap  between  the  EU  and  its  competitors  is 
reducing. 

Some  Member  States  had  an  early  start  in  broadband  deployment  and  reach  levels  of 
penetration above 10% of the population. Five countries have higher penetration rates than the 
United States, but they still lag behind South Korea and Canada (Figure 5).  

Figure 5 - A comparison with third countries 
January 2004

)
n
o
i
t
a

l

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p
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a
t
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p
(

e
t
a
r

n
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i
t
a
r
t
e
n
e
P

25%

20%

15%

10%

5%

0%

Canada

South Korea

DK BE NL

Japan

SE FI

USA AT FR

EU 15*

Source: Commission Services and Point topic

DE ES UK PT IT LU IE EL

DSL

Cable+other

South  Korea,  with  a  penetration  rate  of  23%,  has  approached  saturation  (Figure  6).  Some 
European  Member  States  were  amongst  the  fastest  growing  markets  in  the  second  half  of 
2003. This is the case of Denmark, the Netherlands and Finland, although they already started 
with relatively high penetration rates. France is witnessing strong growth in DSL connections, 
achieving  a  penetration  rate  above  EU  average.  Data  from  Greece  and  Ireland  also  show 
significant growth, proof of a true take-off of the market. 

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Figure 6 - *Grow th in broadband penetration rates 
July 2003 - January 2004  

3

2,5

2

1,5

1

0,5

0

i

s
t
n
o
p
e
g
a
t
n
e
c
r
e
P

FI

NL

DK

FR

Japan 

Canada

USA

EU15

China

S Korea 

Source: Com m ission Services 

* Difference in percentage points

4.3 

PC penetration 

Some  countries  consider  the  stimulation  of  PC  penetration  as  an  important  element  of 
broadband  national  strategies,  to  foster  Internet  use  and  broadband.  However,  the  relation 
between  the  take-up  of  broadband  and  the  penetration  of  PC  and  of  the  Internet  at  the 
aggregate level does not give strong evidence of a direct relationship between these variables. 
Provisional data coming from the latest eEurope 2005 benchmarking exercise (Figure 7) show 
that some of the countries with the highest penetration of PC and of the Internet like the UK 
have  a  relatively  low  broadband  take-up.  On  the  contrary  others,  like  Portugal,  feature  low 
household  take-up  of  PC  and  the  Internet  with  a  relatively  high  proportion  of  broadband 
connections. 

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Figure 7 -  Connected Households
1st quarter 2003

UK

FI

PT

AT

LU

IE

EL

DE

DK

EU*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

 % households 

unconnected PC

narrowband

broadband

Source: Com m ission 

i

* Arithmetic average of 9 Member States

4.4. 

The role of competition 

Competitive  broadband  markets  are  prone  to  faster  growth.  Facility-based  competition  and 
open  access  provisions  on  incumbents’  networks  deliver  benefits  in  terms  of  the 
price/performance  ratio  and  increased  diversity  of  choice  for  consumers.  These  principles 
have been embedded in the new regulatory framework for electronic communications. Recent 
developments corroborate these views. Competition on the broadband market is still weak in a 
number of Member States, but increasing.  

4.4.1  Facility-based competition 

The  best  performing  countries  in  the  Union  and  abroad  are  characterised  by  a  significant 
degree  of  facility-based  competition  (Figure  8).  Competition  between  alternative  platforms 
improves  customer  choice  and  allows  providers  to  control  all  aspects  of  their  network, 
including costs and maintenance. In general, there is a positive relationship between facility-
based competition and growth in penetration rates: 

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Figure 8 - Facility-based competition
January 2004

70%

60%

50%

40%

30%

IE

20%

EL

LU

l

s
e
i
g
o
o
n
h
c
e
t

r
e
h
t
o
f
o
e
r
a
h
s

10%

0%

0%

AT

FI

NL

SE

BE DK

PT

UK

ES

IT

FR

DE

2%

4%

6%

8%
penetration rate

10%

12%

14%

Source: Com m ission services

*Note:  The  chart  considers  the  aggregate  market  share  of  cable  modem,  satellite,  fibre  optics  and  unbundled 
DSL lines as an indicator of facility-based competition. The other share, made by the incumbent’s DSL, resale 
and bitstream access, does not provide the same service differentiation from the users’ point of view. 

Facility-based  competition  is  not  widespread  in  the  Union.  Cable  coverage  is  relatively 
limited,  especially  in  the  large  countries  (with  the  exception  of  the  UK).  New  platforms 
bringing  fibre-to-the-home  have  been  built  in  Sweden  and  Italy,  although  mainly  in  urban 
areas.  Wireless  technologies  are  expected  to  change  the  market  in  the  medium  term,  but 
currently provide a viable alternative through local trials only.  

4.4.2  Access competition 

In the absence of strong facility-based competition, regulation designed to open local access 
bottlenecks to competitive forces has an important role to play for the delivery of innovative 
services.  Local  loop  unbundling  and  shared  access  were  mandated  by  Regulation 
2887/200018. The slow pace of local loop unbundling led regulators to focus on other types of 
wholesale  products  such  as  bitstream  access19.  In  its  Recommendation  on  Relevant  Product 
and Service Markets20, the Commission identified a relevant market for ‘wholesale broadband 
access’ covering bitstream access. 

18 
19 

20 

Regulation (EC) No 2887/2000 of 18 December 2000, OJ L 336 p. 4 of 30.12.2000. 
Bitstream access is a wholesale product that consists of the provision of transmission capacity in such a 
way as to allow new entrants to control the technical characteristics of the service to the final user and 
to offer their own value-added services.  
Commission Recommendation 2003/311/CE of 11 February 2003, OJ L 114, 8.5.2003, p. 45. 

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The opening of the DSL market to competition is reflected in the recent trends. The average 
market share of the incumbents has reduced over time, reaching 73.7% of the DSL market in 
January  2004,  down  from  more  than  80%  one  year  before.  The  shares  of  resale,  bitstream 
access and local loop unbundling have increased (Figure 9).  

Figure 9 - DSL m arket in the EU: evolution of m arket shares of incum bents and new  
entrants January 2003 - January 2004

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

January 2003

July 2003

January 2004

So ur ce: C o mmissi o n  Ser vices

DSL incumbent

Bitst ream ULL

Resale 

In  the  total  broadband  market,  the  incumbent’s  share  in  January  2004  is  57%,  down  from 
60.6%  one  year  earlier.  In  some  countries  (Germany  and  Luxembourg  in  particular)  the 
incumbent still has a relatively high share. In Portugal, Denmark and Finland the incumbent 
also owns part of the cable network. 

4.5 

Price considerations 

Stronger  competition  is  ultimately  reflected  in  the  behaviour  of  retail  prices.  It  is  therefore 
useful to investigate the relationship between broadband take-up and prevailing retail prices. 
Prices vary across countries, and the comparison is made complicated by the different speeds 
offered  and  by  variations  in  pricing  structures21.  Figure  10  shows  prices  charged  by 
incumbents  in  the  Member  States  for  different  speeds  as  of  February  2004.  Prices  relate  to 
monthly residential un-metered offers, and do not take into account the initial fixed cost of the 
modem.  Prices  are  similar  across  countries  at  low  speeds,  while  variations  are  more 
pronounced at higher performances. Tests on the correlation between broadband penetration 
(Figure  3)  and  prices  (Figure  10)  confirm  that  prices  are  significant  determinants  of 
broadband take-up at all performance levels, except for speeds above 2Mb/s. In this category, 
the availability of high-speed offers seems to be attractive in itself, independent of price.  

In  Belgium,  residential  customers  have  been  offered  relatively  high  speed  services  (3  or  4 
Mb/s). In November 2003 the federal government called upon cable and telecom operators to 
market  lower  bandwidth  services.  Some  operators  have  quickly  reacted  and  nowadays  it  is 

21 

In some countries offers may include a metered element relating to the usage of the service. 

EN 

20 

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possible to purchase connections at lower speeds (250-512 kb/s) and reduced prices (20 euro 
per month) or with alternative metered pricing. 

Figure 10 -  Incumbents' prices for unmetered residential DSL 
February 2004

UK

SE

FI

PT

AT

NL

LU

IT

IE

FR

ES

EL

DE

DK

BE

0

50

100

150

200

250

            Monthly fee (euro per m onth) 

144 >512 Kb/s

>=512<1024 kb/s

>= 1024 kb/s

>=2MB/s

Source: Offers published on incum bents' Websites 

Overall, competition is limited but there are good signs of improvement. The rapid growth in 
broadband take-up witnessed over the past two years is clearly linked  both to facility-based 
competition  and  the  increase  in  competition  within  the  DSL  market.  High  penetration  rates 
are  related  to  more  attractive  offers  in  terms  of  prices  and  speeds.  This  strengthens  the 
importance  of  the  quick  transposition  and  consistent  implementation  of  the  new  regulatory 
framework  for  electronic  communications  and  of  the  work  on  remedies  the  Commission  is 
carrying out with National Regulatory Authorities. 

5. 

CONCLUSIONS 

Broadband  services  potentially  create  new  markets,  increase  workers’  productivity,  and  add 
value to business performance, public efficiency and quality of life. Harnessing the broadband 
benefits  is  crucial  to  consolidate  progress  towards  a  knowledge-based  economy  and  ensure 
growth  through  improved  competitiveness.  The  successful  deployment,  take-up  and  use  of 

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broadband  are  therefore  of  central  importance  to  the  future  prosperity  of  the  European 
economy and to its social cohesion. 

Recognising the benefits of broadband, at the 2003 Spring European Summit Member States 
agreed to draw up national broadband strategies by the end of the year. The EU-15 Member 
States  have  now  made  available  coherent  plans  indicating  the  objectives  and  roadmaps  that 
have been reviewed in this Communication.  

Availability of infrastructure varies across countries, as it is driven by geographical features, 
population  density,  technological  developments,  coverage  of  cable  TV  networks,  level  of 
competition,  and  other  factors.  As  a  result,  strategies  describe  initiatives  with  varying 
emphasis according to the state of coverage, but all adopt a common approach. 

Several  Member  States  have  signalled  the  need  for  national  strategies  to  be  adjusted  and 
updated, taking into account new technological and market developments. Particular attention 
should be paid to the following issues: 

(a) On the supply side: 

(i) Mapping of broadband availability is a useful starting point for the identification of under-
served  areas  and  needs  to  be  continuously  monitored  and  updated  given  the  rapid 
development of broadband throughout the Union. 

(ii)  Public  funding  should  take  account  of  the  Guidelines  on  the  use  of  Structural  Funds  in 
electronic communications not to distort competition nor private commercial incentives. 

(b) On the demand side: 

(i) Promoting the development of open and interoperable public services. 

(ii)  Proposing  all  necessary  operational  measures  to  enhance  connectivity  of  public 
administrations, schools, hospitals and public health centres. 

(iii) Implementing demandaggregation policies taking into account competition concerns. 

(iv) Improving the efficiency of financial incentives for broadband take-up. 

In  the  short-term,  given  the  strong  focus  on  coverage  of  remote  and  rural  areas,  national 
strategies  are  most  likely  to  have  an  immediate  impact  on  the  deployment  of  infrastructure. 
For this reason they are considered an important contribution to the Growth Initiative. A first 
assessment  of  their  achievements  will  contribute  to  the  progress  report  on  the  Growth 
Initiative to be submitted to the European Council in Spring 2005.  

Further  actions  on  the  supply  and  the  demand-side  of  the  broadband  market  have  been 
proposed  by  the  Commission  Communications  “Connecting  Europe  at  High  Speed:  Recent 
Developments in the Sector of Electronic Communications” and “eEurope 2005 Action Plan: 
An  Update,  COM(2004)380”.  These  actions  aim  at  accelerating  coverage  of  under-served 
areas, overcoming barriers to the development of innovative content and services to stimulate 
demand,  obtaining  greater  insights  on  the  reasons  for  the  current  lag  in  demand,  and 
facilitating deployment of the new Internet Protocol (IPv6) to widen the range of innovative 
services and applications. 

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These actions are complemented by the following:  

•  Technological  developments,  growth  of  the  broadband  market,  exchange  of  experiences 
and  lessons  from  implementation  require  an  update  of  national  broadband  strategies. 
Member States should complete a comprehensive update by the end of 2005. 

•  New Member States should adopt national broadband strategies by the end of 2004. 

•  Monitoring  progress  in  the  implementation  of  national  broadband  strategies  will 
contribute to the assessment of the eEurope 2005 objectives of widespread availability and 
use  of  broadband  in  the  EU.  The  Commission  will  review  progress  and  developments  in 
the first half of 2006 as part of the evaluation of eEurope 2005. 

EN 

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