I Found this article:)

poland internet: Expensive internet access hinders economic growth

FROM DIALOG NEWSEDGE

[Polish News Bulletin]

Access to broadband Internet in Poland is expensive and the number of users per 100 citizens is one of the lowest in Europe, prove most available analyses. The published on Tuesday report prepared by the Adam Smith Centre (CAS) indicated that the high prices largely result from the voracity of operators.

Specialists from CAS compare the expensive Internet providers to football hooligans. In their opinion, Polish companies, including the largest market player ? the TPSA telecom, drain the pockets of their clients, thus limiting development of information society. According to CAS, nominally the prices could be the lowest in the European Union. This fact would increase access to the global web.

"Even if the prices of equipment used in constructing infrastructure are levelled in Europe, in comparison to the low labour costs in Poland one can expect that the prices of services would be the lowest in the EU," read the report.

According to the French weekly "L'Express", in euros a TPSA employee earns 2.5 times less than an employee at France Telecom.

The report indicated that binding the prices of Internet access with the connection's flow capacity ? the higher the transfer speed, the bigger the costs ? is only partially justified by the operators' costs. Investment spending directly connected with data transfer speed most often do not exceed one third of the overall investment costs. In the fragments of the network, which are directly connected with the client's access to the Internet, equipment costs are not dependent on the connection's speed. Maintenance costs also are not connected with the transfer speed.

In the opinion of the report's authors, TPSA's offer of the lowest speed connections (up to 512 kb/s) is the cheapest on the market. In case of average speed connections (512-2,048 kb/s), it is one of the cheapest. But in case of the fastest connections, TPSA's prices are the highest.

The thesis concerning high profits of operators is confirmed by the decision of the head of the Office for Electronic Communications (UKE) on bulk sales of access to the Internet by TPSA. In a few months operators will be able to buy access to the web by a half more cheaply than the current TPSA's retail price. And even then ? despite the high rebate in bulk sales ? TPSA should still record earnings from its sales. This means that its current profits from the sales of broadband access to the Internet probably exceed 60 percent.

"In our wildest dreams we have not expected to get a 50 percent rebate," said Jaroslaw Mikos, head of the telecom operator GTS Energis. He did not want to reveal how much cheaper TPSA's competitors will be able to offer the same service. "It is hard to say today, whether we will enter price competition with TPSA," he said. Mikos emphasised that a company which buys the connections in bulk, has to bear the costs of cooperating with TPSA and its own costs connected with sales. "In other countries where GTS is operating, our prices are by 10-15 percent lower than the prices of the national operator," said Energis' CEO.

In the opinion of Mikos, you can expect a higher drop in the prices of broadband Internet access, when the network's fragments between the switchboard and the subscribers' sockets are freed. Then TPSA's rivals will be able to offer all telecom services, only by paying the national telecom a monthly fee.

According to Andrzej Piotrowski from the CAS centre, UKE's decision will "solidify the current, unfavourable structure of access to the Internet." It is dominated by the slowest connections (up to 512 kb/s), as this is what the Poles can afford. "Full access to opportunities offered by the Internet ? music, films, sending large packets of data ? begins with the higher transfer speed," said Piotrowski. "Operators in Europe are turning away from offering the slowest connections," he added.

"Internet providers will be companies blocking development as long as they figure that short-term financial results from offering broadband Internet access services are important," said Robert Gwiazdowski, expert from the CAS centre. "They are building a barrier to knowledge. In the long run a cut in prices will positively influence their results, because new users will appear. Operators, which are hiking prices of Internet access to excess, are somewhat similar to football hooligans," he said.

Copyright (c) 2006 Polish News Bulletin of the British and American Embassies

Copyright (c) 2006 The Dialog Corporation
Comments
10
What I read from that's TPSA basically equates to British Telecom (BT) and has a monopoly on internet and telecom services, and are/have been responsible for the infrastructure in Poland.

The same scenario existed in pretty much every country which wasn't small (Estonia, Sweden and the likes) and had a huge population. Don't worry it will improve over time, and generally the development is exponential so you'll receive ADSL2 speeds much quicker than you waited for ADSL to be widespread etc.
uk would have such a better internet infrastructure had Sky not won out against cable :<

we always have BT's 21cn to look forward to
Parent
Panda on 27/05/08, 04:28:48 PM | Reply

tl;dr
I AM POLANDER
SON OF BITCH TPSA
TPSA IS PIG
DO YOU WANT A 512KB INTERNET?
DO YOU WANT A HIGH PRICES?
TPSA IS PIG DISGUSTING
MACIEJ WITUCKI IS A MURDERER
FUCKING TPSA
Back to top