Denktank verwacht sterke groei breedband-internet in Oost-Europa (en)

EUOBSERVER / BRUSSELS - The EU's new member states are set to overtake the old EU-15 in broadband internet penetration rates by 2010, according to a new report.

The report - by Boston based analytical group Yankee - shows that, although currently lagging behind the 15 "old" countries, new member states are set for a rapid catching-up process that could see them forging ahead in the next five years.

The ten new member states had a broadband penetration rate of 1.9 percent at the end of 2003, compared to 12 percent in the old EU 15.

According to the report the new member states have a "relatively more affluent, urban, techno-literate middle class".

Strong competition in some countries between telecommunications and cable TV companies as well as local political support also means the gap is closing.

The new countries will also benefit from EU technological funding.

Yankee says that Hungary, Poland and the Czech Republic were due to make the biggest advances.

These countries had a meagre 2 percent penetration rate at the end of 2003 but could grow to 17 percent by the end of 2008 due to a wide roll-out of cable internet services.

On the other hand, Slovakia has been "slow to develop", according to the group and while Malta, Cyprus, Latvia and Lithuania all have average rates at present, they have limited opportunities for outside companies.

Broadband penetration is a key factor in the EU's aim to be the "most competitive, knowledge-based economy in the world by 2010" - the so-called Lisbon Agenda.