The Poland Ministry of Infrastructure's target to increase by 350 percent the number of broadband Internet users by 2006

The Poland Ministry of Infrastructure's target to increase by 350 percent the number of broadband Internet users by 2006 is overly optimistic given the current monthly costs for digital subscriber line (DSL) connections and the lack of telecom and cable market competition to drive them down. Last week, Deputy Infrastructure Minister Wojciech Halka said that he would like broadband Internet users to number 1.6 million in 2006, up from the current 461,000 with telecom and cable companies both expected to spearhead this growth. "This number is possible, but I think that telecoms have to cut their prices first," says Michał Marczak, analyst at BRE Bank. At present, telecom operators are offering the DSL, or high-speed Internet access over existing copper cables, for between zł.150 and zł.99 per month, depending on speeds, Marczak said. Svetlana Issaeva, a senior analyst at London-based research firm Pyramid Research, said that much of the future of the broadband market depends on TP SA and the stance the Postal and Telecommunications Regulatory Office (URTiP) takes on competition issues. Analysts explained that URTiP must push TP SA to open up the local loop to competitors, to allow companies such as Netia and Telefonia Dialog to spread their market penetration. Issaeva said that Netia's recent acquisition of El-Net could be a first step towards spurring competition on the market. She explained that given its now larger network, Netia will be in a better position to offer services different to those of TP SA. And, as Netia executives have said, the greater part of the company's future strategy targets data transmission, rather than traditional voice services. That alone could improve the market.