Monday, October 20, 2008

Prices of broadband Internet connection in Spain

Despite the fact that Telefonica is one of the most expensive operators in Europe the most used broadband package in Spain is 10.9% cheaper than in the rest of Europe. The phoneline and broadband internet connection package at an average speed of between 2 and 10 Megas, the most used broadband package in Spain, is 10.9% cheaper than the average price of similar offers in other EU states. More specifically, this package can be contracted in Spain for 30.3 euros (according to adjusted power of acquisition – PPP) while the average price of similar offers in other EU states costs 34 euros according to figures published by the Comisión del Mercado de Telecomunicaciones (CMT) and with reference to the first quarter of 2008.

Moreover, CMT highlights the fact in Spain that there has been a fall in price of phone line and broadband connection packages with respect to the previous quarter although it says that these falls are more pronounced in other EU states. As far as high speed connections are concerned (more than 10 Megas) despite the fact that the best offer in Spain has dropped in price by 13% compared to the previous quarter this package is still 2% more expensive compared to the best offers in the rest of the EU (35.6 euros compared to 34.9 euros).

On the other hand, although the price of offers for lower speed broadband internet connection have gone down by 11% in Spain they are still 8.7% more expensive than the European average (32.4 euros compared to 29.9 euros).

Furthermore, as far as Telefónica is concerned CMT says that its offers are more expensive than the average for other European telecommunications monopolies (Deutsche Telekom, France Télécom, Telecom Italia, BT or KPN), despite the fact that it has reduced its price for broadband connection of 1 mega (for both phone line and broadband connection or just broadband internet connection).

Finally CMT discovered that phone line and broadband internet connection between 2 and 10 megas is 36.9% more expensive in Spain (51.9 euros compared to the European average of 37.9 euros); the offer for low speed connection is 25.3% higher (36.7 euros compared to 29.3 euros); while the package for high speed connection shows the biggest difference with respect to the rest of the EU (63.7 euros in Spain compared to 41.2 euros in the UE), which works out 54.6% more expensive.

The objective of the report by CMT, which takes into account not only the price of services but also the power of acquisition in different countries, is to compare the cost of access to broadband internet connection for Spanish and European consumers
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posted by Euroresidentes at 9:14 AM



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