Plenty of people will be keeping a close eye on the IPTV service that Swisscom launched today, as it uses the same Microsoft middleware that AT&T's U-Verse employs.

But while you're looking overseas, one analyst told me yesterday, you should also take note of what's happening in Germany. (No, not that.) The European Union is threatening it will sue the German government, which directly and indirectly owns about a third of DT, if it passes a law protecting DT's VDSL deployment from unbundling requirements. The EU says the law would violate an EU treaty opposing monopolies. Germany says it has no incentive to roll out VDSL if it can't retain exclusive use of the access lines involved.

However, DT's own record undermines its argument. In Germany, the largest but one of the least competitive broadband markets in Europe (DT claims about 90% of the broadband lines there), broadband penetration is 14%, about average for the continent but a far cry from the 30% seen in Europe's most competitive market, Denmark. That's changing, but not because of new technology. It's changing because of competition and, yes, regulation. As regulators force DT to unbundle its non-VDSL broadband access lines to competitors, the company cut its prices by nearly a third. That's helping to drive penetration.

Somewhere in that tale, is there a lesson for the U.S., whose 19% broadband penetration is not a huge source of pride? You tell me.

E-mail me at egubbins@prismb2b.com.