• AT THE END OF THE FIRST HALF OF 2005, BROADBAND CONNECTIONS THROUGHOUT EUROPE EXCEEDED THE THRESHOLD OF 50 MILLION, WITH A 24% RISE IN ONLY 6 MONTHS 
• INTERNET TELEPHONE (VOIP) AND DEMAND FOR VIDEO SERVICES REPRESENT THE MAIN DRIVERS BEHIND FURTHER GROWTH OF THE MARKET 
• ESTIMATES AND DETAILS IN E-MEDIA INSTITUTE’S NEW EUROPEAN BROADBAND MARKET MAP  

In the first half of 2005, there has been another jump in the number of broadband connections in European countries.

e-Media Institute estimates that in Italy alone, the total number of broadband lines rose about 12% to 5.5 million from 4.7 million at end-2004.  At the beginning of 2004, there were only 2.4 million broadband lines, making for a growth rate of more than 100% in only 18 months.

Using the ratio between broadband lines and population as the indicator of diffusion, as of June 30 Italy had nearly 100 lines per 1,000 habitants (95 lines); far from the penetration rates in Scandinavian countries (about 200 lines) but not far from France (134 lines) and Great Britain (136 lines).  

Among all technologies that transmit broadband connections, DSL is the dominant one, used in about 80% of all European connections.  Those connections based on cable-modem (inexistent in Italy) and on other systems (fibre optic, satellite, etc.) play a minor role.

The driving force for further broadband development will no longer be due solely to demand for high-speed access to multimedia contents transmitted via Internet.  Rather, it  will be found in demand for two other services: Internet telephony (VoIP) and the supply of television services on DSL (IPTV).  But it will especially be the first, seen by consumers as a “cost savings technology”, to push the number of connections higher.  The supply of television services on DSL is instead still viewed with caution by consumers and must compete with numerous other television offerings. If the wave of interest in VoIP continues, it is possible that the objective of 100 million lines in Europe could be reached by end-2006, making for another 100% rise in the market.

First 10 European countries for number of broadband lines as of June 30, 2005 (figures in millions)

	Country	Number of lines
1	UK	8.103
2	Germany	7.972
3	France	8.056
4	Italy	5.491
5	Spain*	4.330
6	Netherlands	3.809
7	Belgium	1.863
8	Switzerland	1.511
9	Sweden	1.488
10	Denmark	1.101

Source: e-Media Institute / * figure as of August 2005

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