Internet Boom in New EU States Underway

Despite the Internet's rapid diffusion throughout Europe, many countries -- including the 10 new EU states -- have substantial room for growth in coming years. The average Internet penetration rate in the 10 new states is 33 percent lower than in the rest of the EU and the average international backbone bandwidth per user is 70 percent lower.

This gap is narrowing rapidly, however. International backbone capacity to the new EU countries grew 293 percent between 2001 and 2003, outpacing 167 percent growth in the old EU countries. "As DSL and cable modem technology spreads, Internet backbone bandwidth will be deployed and soaked up rapidly," said TeleGeography senior analyst Alan Mauldin, "but there is no shortage of long-haul fiber to supply these backbones." In Prague, for example, less than 5 percent of potential long-haul capacity connected to the city is currently in use.

“The overbuilding of network infrastructure in Western Europe did not stop at the borders of the old Iron Curtain. Dozens of high-capacity networks extend into Prague, Budapest, Bratislava, and Warsaw. The new frontier for network deployment is in the Balkans and eastward into Romania and Ukraine,” remarked Mauldin.

To learn more about global bandwidth supply, demand, and pricing, see International Bandwidth, available now from PriMetrica's TeleGeography Research Group.

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STATISTICAL APPENDIX

City
Int'l IP Bandwidth (Gbps)
Lit Bandwidth (Gbps)
Potential Bandwidth (Gbps)

Number of Bandwidth Providers
Old EU Cities
London 550.3
9,515.0
276,530
33
Paris
399.4
9,240.0
254,790
24
Frankfurt 320.2
10,245.0
357,600
32
Amsterdam 267.1 8,140.0 253,440
24
New EU Cities
Prague 32.4 3,797.5 141,600
16
Warsaw 13.7 3,732.5 141,600
13
Budapest 13.0 3,412.5 148,800
13
Potential EU Cities
Sofia 0.4 352.5 23,040
3
Bucharest 1.7
1,532.5
54,720
6
From: International Bandwidth 2004
Notes: All data as of 2003. International Internet bandwidth measures lit capacity dedicated for use in an IP network connected across international borders. Lit and potential bandwidth measure available bandwidth traversing a city. Bandwidth providers include operators offering capacity on their own.

 

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