Home » 

UK ISP News Archives

 » 
Sponsored Links

EU – Most Expensive For Broadband

Posted: 21st Oct, 2003 By: MarkJ
Point Topic's latest analysis of global xDSL tariffs has concluded that, while overall prices have fallen, European still remains the most expensive place for broadband. Believe it or not, BT is officially one of the cheapest:

Prices for DSL broadband services have dropped sharply in the past 6 to 12 months. This is a new trend. Most operators held prices steady or even raised them during 2001 and 2002, but there has been an international wave of price cutting during 2003.

This emerges from Point Topic's latest analysis of DSL tariffs, published in the eighth edition of the DSL Worldwide Directory - Consumer Services. Point Topic's index of DSL monthly rentals shows there was an average 25% cut in prices between September 2002 and September 2003.

Price cuts have been the key to rapid growth in broadband users in the past. In Germany and Japan, for example, DSL numbers leapt in response to lower prices in 2002. But Deutsche Telekom has now had to raise its charges again, because of complaints that its prices were anti-competitive.

The price cuts are not restricted to North America. Of the 14 major telcos compared by Point Topic, only one, Deutsche Telekom, increased DSL rentals in the last 12 months. The USA came late to the game but it has seen some of the sharpest price reductions. Some operators are holding tariffs more or less level but they tend to be ones which started with relatively low prices in the first place, such as Chughwa and Belgacom. But the overall "global index" which averages the trends in each of the 14 countries is showing a definite fall from its peak in 2002.

Comparing tariff levels between operators in different countries, rather than operators' own changes over time, shows that the Asia-Pacific region is still by far the cheapest place to get broadband services. But North American prices are converging at a level not much higher than the more expensive Asia-Pacific countries. Europe is distinctly the most expensive region - largely due to the rising Euro and the high level of value-added tax. But the fall in the value of the pound against the Euro has made BT one of the cheaper European DSL suppliers.

One key question is whether operators will keep on cutting prices at this rate. They will certainly try to keep reductions as small as possible. Their business plans for DSL are not very lucrative so they need to maximise revenue where they can. Some further reductions will be needed to keep the market growing and in response to competition and falling costs but such a sharp and widespread reduction as in 2003 is unlikely to come again.


In summary, global prices have come down, the EU remains the most expensive, yet BT is one of the cheapest. Further, less significant, price decreases can be expected over the coming years.
Search ISP News
Search ISP Listings
Search ISP Reviews
Cheap BIG ISPs for 100Mbps+
Community Fibre UK ISP Logo
150Mbps
Gift: None
Virgin Media UK ISP Logo
Virgin Media £24.00
132Mbps
Gift: None
Shell Energy UK ISP Logo
Shell Energy £26.99
109Mbps
Gift: None
Plusnet UK ISP Logo
Plusnet £27.99
145Mbps
Gift: None
Zen Internet UK ISP Logo
Zen Internet £28.00 - 35.00
100Mbps
Gift: None
Large Availability | View All
Cheapest ISPs for 100Mbps+
Gigaclear UK ISP Logo
Gigaclear £15.00
150Mbps
Gift: None
YouFibre UK ISP Logo
YouFibre £19.99
150Mbps
Gift: None
Community Fibre UK ISP Logo
150Mbps
Gift: None
BeFibre UK ISP Logo
BeFibre £21.00
150Mbps
Gift: £25 Love2Shop Card
Hey! Broadband UK ISP Logo
150Mbps
Gift: None
Large Availability | View All
Sponsored Links
The Top 15 Category Tags
  1. FTTP (5467)
  2. BT (3505)
  3. Politics (2523)
  4. Openreach (2290)
  5. Business (2251)
  6. Building Digital UK (2233)
  7. FTTC (2041)
  8. Mobile Broadband (1961)
  9. Statistics (1778)
  10. 4G (1654)
  11. Virgin Media (1607)
  12. Ofcom Regulation (1451)
  13. Fibre Optic (1392)
  14. Wireless Internet (1386)
  15. FTTH (1381)
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms  ,  Privacy and Cookie Policy  ,  Links  ,  Website Rules