Western Europe's incumbents have maintained or even increased their retail share of the DSL market over the past two years, even in countries where local-loop unbundling has exploded. The unbundlers' gains have come at the expense of wholesale DSL, highlighting the incumbents' need to devise innovative wholesale strategies to make the most of their existing and planned next-generation networks. Wholesale subscriptions accounted for about one in five DSL connections at end-1Q08, and according to some incumbents can deliver better margins than retail ones.
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