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European monthly broadband prices down €5 during 1H

26 августа 2010

The average price of a fixed broadband bundle – including single, double or triple-play packages – fell €5 per month in Europe during the first half of 2010, amid continuing downward pressure from mobile broadband services.

According to a new study published on Wednesday by Analysys Mason, the average price of fixed broadband services declined to €40.70 per month from €45.80 between the end of the fourth quarter of 2009 and the second quarter of 2010.

The research firm's survey of over 1,000 service bundles in more than 20 European markets also found that average connection speeds rose during the same period.

"Almost 20% of the tariffs we tracked during the second quarter of 2010 offered downstream bandwidths of 30 Mbps or greater – although the proportion of subscribers that actually take these ultra-fast services is likely to be much lower than 20%," said Martin Scott, senior analyst at Analysys Mason, in a statement.

"Consequently, the average price per megabit per second has declined from €7.50 in the fourth quarter of 2009 to just €5.80 in the second quarter of 2010," he said.

The fact that the fall in average price includes bundles incorporating fixed voice and TV services could indicate that triple-play competition is heating up and driving down tariffs, and subsequently ARPUs.

Meanwhile, Scott attributed the price erosion in part to continued downward pressure from mobile broadband services.

"Prepaid mobile broadband services with usage caps of 3 GB or more – which are sufficient for light users – now undercut entry-level fixed broadband propositions in terms of price for most Western European countries," he said.

Источник: Total Telecom

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