Abstract
Data on broadband performance shows that Japan and Korea are significantly ahead of the USA and Europe. Korea is by far the global front-runner in terms of broadband penetration. However, Japan is the global leader in terms of speed, price and diffusion of advanced technology (specifically Fibre-To-The-Home (FTTH)). This paper explains these three puzzles, drawing out the lessons for Europe regarding the development of broadband infrastructure, which provides the basis for the evolution and transformation of the entire global ICT sector. Specifically, three interrelated explanations are given: (1) the role played by what are referred to as 'disruptive' competitors or new entrants; (2) the importance of competition between technologies and (3) the significance of the strength of regulation.
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