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Page 6

Conclusions

At present there is a clear desire amongst users for new broadband services. Games players alone are sufficient to ignite the market. However, the lack of bandwidth at affordable prices is blocking market take-off.

The broadband market is still very small, particularly in Europe. The availability of broadband capacity has been the subject of over-estimation, both in terms of capability (overselling of cable modem technology in the past few years) and in terms of physical capacity. The start of the roll out has been plagued by problems in both the US and Europe and it is not clear that the situation will change in the near future.

However, a lot of new players, including those who entered the market in the last year, should start to provide better service levels soon. A key factor will be the speed of de-regulation of access to the Internet backbone.

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