The OECD consists of 30 of world's industrialised countries, including
Some of the conclusions made by the staff report are:
* In OECD countries, cable companies, rather than incumbent telecommunications
carriers, have been the leaders in introducing broadband access
services. This is especially true in countries like Korea, Canada,
Belgium, Sweden, and Japan.
* While telecommunications carriers in these countries did not
lead the way to offering broadband access, they have often proven
to be formidable competitors once they begin to offer digital subscriber
lines (DSL) services.
In 1999, 84 per cent of OECD broadband subscribers used cable modem
services and 16 per cent used DSL. In 2000, the share held by cable
modem users had slipped to 55 per cent with DSL users at 45 per
cent. In 2002, DSL took the lead with 54 per cent, cable modems
were at 41 per cent, and other platforms at 3 per cent. Across the
OECD, DSL subscribers grew twice as fast as cable modem subscribers
in the fourth quarter of 2002.
This suggests that DSL providers, particularly incumbents, are
not innovators but have the ability to compete vigorously and gain
significant market share once they decide to enter a market.
* Sweden is the only country with a significant number of broadband
users with access to a third platform other than cable modem services
and DSL. Almost as many subscribers use Ethernet Lans (fiber networks
within apartment buildings) as cable modems.
* In Japan and Denmark, new entrants took advantage of unbundling
and line sharing rules to use the incumbent Telco's lines to provide
New entrants had a 44 per cent market share in Denmark in 2001
(which since declined to 21 per cent in 2002) and 60 per cent market
share in Japan. In both countries, competition from cable is weak
and unbundling requirements may play an important role in promoting