A new report published by Quantum-Web, reveals the
effective cost differentiation of different bandwidth
packages 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 by incumbent and providers.
In the cross sectional analysis of packages, the
average prices is estimated based on "uncapped,
unbundled DSL residential packages against the effective
cost of each bandwidth(Euro/Mb) which is therefore
capable of producing best unbiased analysis. Thus,
the European average prices represent a minimized
heteroscedasticity in each bandwidth prices posted
by outlier packages.
According to our findings,
the price gap between different speed bands 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/(average
tariff/Mb) for packages with speed up to 0.5Mb is
3.24 where the same ratio for 20Mb packages is 0.05.
The higher speeds packages
are increasingly innovative and provide product
bundles".
Innovation as a way to increase
the retaining customers and spending part of revenues
to update copper-based networks to keep up with
demand.
The data 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.
