Revealed: the true cost of broadband

Move to Sweden, avoid Switzerland

By ElectricNews.net • Get more from this author

Posted in Telecoms, 4th March 2004 11:51 GMT

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The average cost of a 512Kbps broadband service in Europe is €74.61 per month. Those seeking the best deals should consider a move to Sweden, while avoiding Switzerland.

The figure comes from a study by consultancy firm Quantum-Web. Their report - entitled "European Broadband Benchmarks" - covers 83 operators in 12 countries across Europe and examines the costs of approximately 730 different billing systems.

The report shows that the most expensive 512Kbps tariff offered is 17 times more costly than the cheapest. Of the many speed bands analysed, Cegetel of France was shown to be the most affordable, having what the report describes as the "cheapest true user prices." The most expensive tariff at 512Kbps was shown to be Switzerland's Sunrise, while the cheapest over 1Mbps per month is offered by Bostream of Sweden, at €1.96 per month.

Around 30 per cent of services offered fall into the €74.61 monthly price bracket, while only 7 per cent fall into the most expensive tariff packages category.

The report also covers all available speeds from 128Kbps through to 4Mbps products. Quantum-Web says that this range of analysis provides "an unbiased impression of the relative price for quality in the European market". European Broadband Benchmarks also looks at residential ADSL, Enterprise broadband, SDSL, VDSL, FWA satellite FTTH and cable services.

"The broadband story in Europe is much wider than DSL," commented Qmars Safikhani, managing consultant at Quantum-Web. "Cross-sectional analysis implies measuring cable, xDSL and satellite fixed wireless. As broadband and wireless increasingly collide, it is critical to offer a perspective that reveals the entire broadband landscape."

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