EU sets new broadband target

The European commission wants broadband penetration within the European Union (EU) member states to reach 30 per cent by 2010 in a bid to drive economic growth within the bloc, reports say.

According to news agency Reuters, the EU's information society commissioner Viviane Reding said only eight of the 27 member countries currently compete with the United States in terms of broadband penetration rates.

Denmark, Finland, Sweden and the Netherlands lead the way, with nearly a third of homes in the countries now using a broadband connection.

The UK, Belgium, Luxembourg and France also all have higher broadband penetration ratios than the US, but the overall score for the whole of the EU is 20 per cent - behind the 22.1 per cent rate set in America.

Ms Reding said new reforms currently under consideration by the European parliament could help member states overtake American usage, which in turn would boost competition in the retail sector and support new business in remote areas.

The proposals, which would come into force in April 2009, would increase competition for fixed networks and challenge call handling charges, she added.

According to Eurostat, 40 per cent of households with internet access in the EU have a broadband connection.