Broadband competition has been dubbed a joke by research company IDC.
In a report into broadband development, IDC says that while broadband is taking off in Europe, it remains in the hands of a few incumbent telcos such as BT.
The research company attributes the rise of high-speed internet services to aggressive marketing rather than competition.
The local loop unbundling process is simply too complex and politically problematic to create a competitive broadband access market within a reasonable timeframe, the report said.
More than four per cent of European homes across Europe are now connected to broadband. Over 68 per cent of these are through telephone lines, while 30 per cent use cable and two per cent use satellite and fixed wireless.
The report said that the failure of local loop unbundling meant that operators were dependent on wholesale services offered by the incumbent company.
The operators must consider offering enhanced voice services, education, public health services and video streaming in order to retain customers and create money from broadband.
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