About the bandwidth:
Around here, technical students can get a 100 Mb line for free, from our government. So, there is a country-wide network (SurfNet), that is at least fast enough for that, and better than 100 Mb internally. Students can share things at the full 100 Mb between them. And while the internet connection was capped at 10 Mb until about a year ago, nowadays they get the full speed. Although I don't think there are any servers that can deliver that speed outside of SurfNet.
They won't get that speed when sharing stuff with people in Scandinavia who are on an equally fast network. Because the connections and switches in between those networks are too slow. Although they all ultimately use the European Internet backbone from the Amsterdam Exchange with their massive Tb++ switches, so that is mostly a question of contracts and cost.
There is a trial running for about a year now, to offer the same speed and infrastructure to customers. But, like DemoCoder said, the providers have not much interest in it. They just don't know what to do with it, and the amount of consumers who want it is low.
So, while it would be possible to do, most consumers want their internet cheap rather than fast. And it would take services like movies on demand to change that. Which is certainly possible, but requires large investments in servers and backbone hookups when the majority of the consumers would make use of it. Because, except for P2P, there is no real reason at the moment to have a very fast connection.