Analysys Mason Finds Broadband Prices Fell in Last Six Months

Broadband prices remained somewhat stable during the recession, but have fallen in the past six months. The average price paid for a fixed broadband service bundle (a single-, double- or triple-play package) has declined by about EUR5 between the fourth quarter of 2009 and the second quarter of 2010 to EUR40.7 per month. This data comes from global telecoms, media and IT adviser Analysys Mason’s Triple-play pricing study, which tracks more than 1,000 fixed broadband-based bundles in Europe and the United States.

By contrast, broadband access speeds have increased, said Martin Scott, senior analyst at Analysys Mason and author of the latest report based on the study, in a statement.

“Almost 20 percent of the tariffs we tracked during the second quarter of 2010 offered downstream bandwidths of 30 Mbps or greater (although the proportion of subscribers that actually take these ultra-fast services is likely to be much lower than 20 percent). Consequently, the average price per megabit per second has declined from EUR7.5 in the fourth quarter of 2009 to just EUR5.8 in the second quarter of 2010,” Scott said.

According to Scott, competition from mobile broadband services contributed to the downward pressure on fixed broadband tariffs during the first half of 2010. The premium that providers charge for mobile broadband services is also eroding. Prepaid mobile broadband services with usage caps of 3GB or more (which are sufficient for light users) now undercut entry-level fixed broadband service propositions in terms of price in most Western European countries.