The European Commission (EC), the executive arm of the European Union (EU), unveiled on June 29 plans that would force telecommunications providers to share broadband infrastructure with rivals and unify regulations in the sector.

"We must open the markets when they are dominated by dominant players," said Viviane Reding, EC commissioner in charge of the EU 's telecommunications policy, adding that the new rules would encourage competition.

"We have seen in all our analysis, where the markets are opened, investments are done and prices go down for consumers," she added.

Many countries are dragging their heels in applying EU orders to open up their markets to competition, allowing historic telephone monopolies to remain dominant players with the power to determine who can access their networks.

As a result, phone companies like Deutsche Telekom AG and France Telecom control 80 percent of European broadband connections.

In contrast, U.S. telephone companies account for only 38 percent of subscribers in the United States.

Reding's plans include setting up a single market for radio spectrum, replacing 25 different regulations covering use of the airwaves.