I'm not sure the UK government has a co-ordinated approach to applying for EU funding

Nigel Moutlon, Cisco

This is the view of networking firm Cisco, which supplies European countries with Ethernet and fibre connections that are 20 times faster that the current speed of broadband access.

While France has already obtained a grant from Europe to build Ethernet networks and the Irish Government is spending �185m on connecting its cities to super-fast broadband, the UK is still relying on ADSL and cable connections.

Director of marketing for Cisco Nigel Moulton believes this is due in part to lack of organisation in the UK.

"I'm not sure the UK Government has a co-ordinated approach to applying for EU funding," he said.

Utility partners

Such funding is vital in the current economic climate where venture capitalists are less likely to invest in the telecoms market and carriers are also more cautious.

The fibre that needs to be laid to carry the networks will also depend on building relationships with utility companies as an alternative to using the telephone networks of incumbents such as BT.

In Italy, internet service provider FastWeb is delivering high-speed access to apartment blocks in Milan. As well as offering customers 20 times the speed of current ADSL services, it also offers low cost internet telephony and video-on-demand for a monthly fee of around �13.

Cheap taste of broadband

Telewest: Hoping to unlock the broadband revolution

In the UK, recent price reductions have improved the take-up of ADSL services.

But this has yet to have an impact on the latest statistics compiled by telecoms watchdog Oftel.

Its figures show that nearly half of UK homes now have an internet connection but the majority are still relying on unmetered services with only 3% connected to broadband.

In an attempt to make its impact on the market, cable operator Telewest is offering consumers a cheap taster of broadband.

From 1 May anyone with dial-up access can sign up for a three month trial of its blueyonder broadband service for a cut-price �13.48.

If users do not want the service after the trial they can claim back the �50 installation fee. Otherwise the service will cost �29.99 per month or �25 if taken with Telewest's TV or phone service.