According to
the last report published by Quantum-Web, the broadband
tariffs in Europe dropped on annual basis by nearly
21% since the fourth quarter of 2005 bringing the
average cost of 1Mbps bandwidth from 48.40 Euro to
38.32 Euro in the fourth quarter of 2006.
xDSL technology and Cable modem
with over 97.5% of broadband subscribers as the favourite
access technologies in Europe have followed their
own trajectory but at the same time there was an asymmetry
in their trend.

xDSL tariffs
decreased by 22.87% since Q4 2005 despite an interim
increase of tariffs in the first six months of 2006
caused by the launch of bundled services across the
region by telcos. After the introductory period, during
the second half of the year, in the assessment period
the xDSL tariffs followed the opposite direction were
a sharp decrease in the cost of xDSL services taking
prices to a historic low record of 41.10 Euro for
1Mbps bandwidth.

Regarding the cost of Cable
modem bandwidth which traditionally is lower than
xDSL, was less fluctuated and prices with launch of
bundled services were increased by a CAGR of 4.9%
to 27.74 Euro per 1Mbps.
This report
provides insight into the status of the broadband
tariffs in Europe. It analyses the trend of tariffs
and speed of over 1300 packages in Europe and briefs
pricing policy and bandwidth offered by 147 operators
in 39 counties (table below). In addition, it quantifies
the competitive situation for tariffs for the main
bandwidths and for bundled and unbundled packages
separately. For pooled analysis all tariffs are calculated
in local currency, Euro, US Dollar and in PPP terms.


For more information
about this press release or the reports, please contact
Pauline Vahey at:pauline.v@quantum-web.com