With this paper, we empirically study the determinants of broadband penetration, with a focus on the effects of the leased line price level on broadband penetration. Our results indicate that when content providers pay more for leased lines, the demand for broadband service is not affected but the supply of broadband service is increased. Interpreting this empirical result from a network neutrality perspective, we can say that easing the zero-price rule, to the extent that it accompanies a rise in the leased line price, positively influences broadband penetration rates and questions the validity of imposing strict network neutrality regulations to promote network investment and broadband diffusion.