A survey of 5 European telcos
included in the launch version of Broadband Pricing
Matrix, shows that Deutsche Telekom is offering the
best value in monthly fees and when translated into
purchasing power parity (PPP).
Residential
customers of Spanish telco, Telefonica de Espana pay
nearly 5 times more per MB than their counterparts
in Germany in PPP terms. In the UK, BT is placed between
the two, with a mid-priced service. The retail price
for a 1MB Broadband package varies from €25.82
offered by Deutsche Telekom in Germany to €103.45
of Telefonica in Spain (excl. VAT).
The benchmark
reveals that diversity in broadband pricing remains
strong, and reflects a wider pattern of increasing
price sensitivity in the sector across Europe. (Graph
1)
However the
survey also revealed that there is no clear relationship
between market share and low price. Although DT in
Germany has a market share of 77% of the broadband
market, Telecom Italia holds a similar share level
but is among the most expensive providers. BT –
in perhaps the most competitive broadband market in
Europe – holds only 37% share. (Graph 2)
Broadband Pricing
Matrix is a new service offered by Quantum-Web as
part of its Broadband Global product, the most comprehensive
suite of broadband statistics, data and analysis available
today, covering more than 200 service providers in
67 countries. The service is based on the most extensive
range of primary research and information sources
from service providers worldwide, telecom's and technology
companies, national and international statistical
organisations, governmental organisations and academic
institutions, Broadband Global range and depth is
underpinned by the quality and robustness of the data
provided.
Using an analytical
process developed for Broadband Global, appropriate
econometrics models are applied to produce reliable
and robust data.
The service
is designed to be the definitive source of broadband
information, data and analysis and a formidable global
information and analysis tool for the converging broadband
and wireless economy.
