New Internet technology competitive with regard to telephone connections is being introduced in Poland, but access to fast links is still expensive in comparison with European Union countries.

Practically all fixed-line telephone operators wanting to count for something in the Polish market offer their users access to Integrated Services Digital Network (ISDN) technology. However, ISDN is being outshined by a new kind of technology-Asymmetric Digital Subscriber Line. With ADSL modems, data transfer is more than 50 times-sometimes even a 100 times-faster. Using the existing infrastructure and wiring, the technology enables transfers up to 9 megabytes per second.

The ADSL technology is already available in Poland, but money is the main barrier. The high charges-about zl.200 per month, in addition to high installation costs-set by Telekomunikacja Polska SA explain why only a third of TP SA's 10.7 million subscribers had theoretical access to Neostrada Plus at the end of 2002. In practice, a paltry 12,000 customers actually used the service.

TP SA's new "infobahn"
Neostrada Plus was first offered in Warsaw, Cracow, Katowice, Wrocław, Poznań and Gdańsk. Unfortunately, from the fall of 2002 to the end of February 2003, TP SA's customers were haunted by problems with broadband Internet access. To deal with the breakdowns, TP SA repeatedly replaced software in Lucent Technologies routers and upgraded user identification software. However, the problems continued and TP SA eventually replaced the routers with Juniper Networks equipment provided by Ericsson. Equipment replacement ended in February 2003. Later, month-long tests were conducted and in April TP SA resumed active sales and advertising for Neostrada.

At the moment, TP SA wants to make the service available to the largest possible group of consumers, hoping that revenue from ADSL and other data transmission services would help make up for the expected drop in revenue from voice connections. TP SA has announced that by mid-May, 57 percent of its subscribers (6.17 million in all) will be within the coverage of Neostrada; while the figure will grow to 72 percent (7.7 million) by the end of the year, as compared to the figure at the end of 2002. TP SA plans to increase the number of calling lines by 400,000 to 11.2 million this year.

For 2004, it is also planning to have 400,000 lines for ADSL technology and another 100,000 lines for other technologies enabling faster data transmission (chiefly ISDN). Thus, it is probable that three years from now, one ADSL line will account for about 30 TP SA fixed lines. Today, there is one ADSL line per approximately 6,100 fixed lines.

The chance for cheaper Internet access will appear after TP SA frees-up the local subscriber loop, in other words, when it allows other operators to reach its customers with competitive services. These changes are foreseen in the telecommunication law passed by the Sejm. This is yet another amendment adapting Poland's regulations to those in the EU and enabling the further liberalization of the telecommunications market.

The local subscriber loop is that part of the network from the subscriber to the first equipment (exchange) of the operator, who later transmits the number dialed by the subscriber or directs the call to them. This is the most expensive section of the entire network, and TP SA must make it available to other operators if they are to reach subscribers directly.

No alternative
According to a 2001 OECD report dedicated to broadband Internet access, Poland was one of six OECD countries in which such a service was unavailable at the end of 2000.

The ISDN and ADSL technologies are already available in Poland, but their prices discourage potential users. In large cities, cable television operators (UPC and Aster City) offer inexpensive fast Internet access via television cables, with prices ranging from zl.100-120 per month. However, due to limited coverage, few Internet users can actually enjoy this solution.

Last year, a lot of hope was pinned on Powerline Communications (PLC), or Internet and telephone access via power lines. The capacity of PLC is enormous-up to 3 megabytes per second. Data is transferred 30 times faster than in an ISDN connection based on a fixed telephone line. However, recently there has been less and less talk about this technology.

One of the two companies which are introducing PLC in Poland is the Polish/American company Pattern Communications. Using the Israeli Main.net technology, last year it offered "Internet from the electric socket" services in Cracow, in cooperation with the local power distribution enterprise. The monthly charge ranged from zl.80-199.