A new report
published by Quantum-Web, reveals the effective
cost differentiation of different access technologies
in 37 European countries.
Overall, the report details trend of broadband prices
in Europe and draws attention to the diversity of
tariffs in residential and enterprise segments and
differentiation of tariff policy based on client
type of broadband connection.
According to our findings,
the price gap between xDSL and Cable modem tariffs
was driven mainly by the application and value added
services but not the package connection speed.
As the table above shows
clearly, in Europe, the ratio of average tariff
of unbundled packages with speed up to 8Mbps for
xDSL and Cable modem is 0.1 Euro where as the same
ratio for bundled packages is 8.5 Euro.
The higher price of Cable
modem packages have a negative impact to net gain
of new subscribers for Cable modem operators and
higher churn rate of subscribers from this technology
to alternative technologies such as xDSL ones for
bundled services.
Lower fixed costs for xDSL
operators to offer bundled services especially voice
over fixed and mobile network is one of the mean
reasons to offer lower bundled tariffs the customers.
Moreover, with spending part
of revenues xDSL operators are partially upgrading
their copper-based networks to FTTc and FTTb.
The European Broadband Tariff Benchmarks as part
of ongoing quarterly research started in 2003, analyses
over 1200 different packages across 37 European
countries and provide the most comprehensive broadband
tariffs analysis in Europe.
