ited States: FCC, Telephone Industry Revenues, 2002; Canada: CRTC, Annual Compe- tition reports; European Union: European Commission, Annual Reports on the Implementation of the Telecommunications Regulatory Package, Annex 1. residences that are held constant across countries, but these indexes often use the carriers' tariff rates rather than actual transaction prices. For U.S. rates, for example, the OECD generally uses the rates of the incumbent carrier in New York (Verizon). Despite these infirmities, the OECD price indexes for 2002, as calculated for the European Commission's Directorate General for Information Society, may provide some useful insights into the effect of competition on rates (table 9-6). One point to note is that countries with the largest entrant shares of the local and long-distance markets-Sweden, the United Kingdom, and Den- mark-tended to have the lowest rates in 2002. Portugal and Greece have little domestic competition, but Greece has much lower rates than Portu- gal, and they are not appreciably above the EU average. Despite its long record of promoting competition, the United States has marginally higher rates than does the European Union, even though U.S. rates are based on Telecom Reform in Other Countries Table 9-6. Residential Telephone Rates in OECD Countries Euros/year at PPP (purchasing power parity) Country 1998, old basket 2002, old basket 2002, new basket European Union Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembourg Netherlands Portugal Spain Sweden United Kingdom Other Japan United States Source: Teligen, prepared for European Commission (August 2002). a state (New York) where competition is more intense than in the average state. OECD data on broadband rates for incumbent telephone carriers, cable modem providers, and other carriers provide some further surprises, as table 9-7 shows for services offering speeds of about 1 megabit a second. (Note, however, that these data do not reflect promotional allowances or installation costs, if any, a