nd that much lower rates are often available for services with very low speeds.) It seems that Germany has lower DSL rates than Denmark, despite the fact that Denmark has cable modem competi- tion and Germany has very little. Most strikingly, the Japanese and Korean prices of DSL offering 8 megabits a second are lower than the prices for only 1 megabit a second in most countries. Note also the wide range in DSL prices, but the relatively narrow dispersion in cable modem prices across countries. At this early stage of broadband development, pricing the Telecom Reform in Other Countries Table 9-7. Broadband Prices, October 2003 Cable modem Download Download speed Price (U.S. speed Price (U.S. Country (kilobits/second) dollars/month) (kilobits/second) dollars/month) European Union Belgium 3,000 61.58 1,024 49.18 Denmark 1,024 80.24 1,024 65.84 Finland 1,024 64.52-126.01 55.46 France 1,024 45.27-84.78 1,280 45.16 Germany 39.50-56.53 1,024 44.14 Greece 1,024 171.62-193.66 Ireland 231.45 45.27 Italy 1,200 73.51 Luxembourg 1,024 137.71 1,024 75.83 Netherlands 1,024 50.88-58.86 1,500 52.18 Austria 67.80 1,024 71.31 Portugal 1,024 142.47-169.51 1,024 91.61 Spain 1,024 157.56 1,024 104.91 Sweden 2,048 54.20-57.34 1,024 42.25 United Kingdom 1,024 46.79-187.25 1,024 55.76 Other Australia 1,500 97.59-117.12 Unspecified 45.53 Canada 1,024 26.81 1,500 34.48 Japan 8,000 21.65 Korea 8,000 33.25-33.61 10,000 30.16 United States 1,500 29.95-69.95 1,500 42.95 Source: OECD, Benchmarking Broadband Prices in the OECD, 2004 (www.oecd.org/searchResult/ 0,2665,en_2649_37409_1_1_1_1_37409,00.html) a. Plans shown are for unlimited use. service is subject to a number of tactical decisions by sellers who are at- tempting to promote a new service and obtain market share. Investment in Communications Equipment Under their less aggressive regulatory approach to liberalizing telecom- munications, the European Union and Canada have experienced a more modest amount of facilities-based entry than the United States. Hence cap- ital investment has exp