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Broadband pricing and growth looking good in UK, Ofcom claims
17 Dec 2009 | 16.40 Europe/London
British broadband, fixed line and mobile prices are among the most competitive in the West, according to research published by Ofcom today.
It has compared the cost of bundling together a fixed line phone with broadband, as well as allowing for moderate mobile phone use and some pay television. The results show that at a price of around £102 per month, the UK is cheapest of the six featured countries, 28% cheaper than the next cheapest region, Italy. The survey also included France, Germany, USA and Spain.
The industry watchdog claims this is mainly down to price competition in the UK which between July 2008 and July 2009 saw broadband prices reduced by 14% and the cost of using a mobile phone came down 8%.
The UK had the cheapest mobile phone calls of the six countries surveyed as well as the cheapest single-service broadband connection. Only Italy provides cheaper land line calls.
BRIC nations pushing broadband growth
Ofcom then looked at twelve countries, including more European countries, Canada, the USA and Japan, as well as the fast-developing BRIC nations (Brazil, Russia, India and China). The watchdog claims to have found growth in the UK’s level of broadband penetration is second only to the Netherlands (at 23 connections for every 100 people in 2008, compared to 25 in the Netherlands).
The BRIC countries, however, are seeing broadband connections growing at a staggering rate of 40% each year, which is way above the average across all 12 countries of 9%. This average has halved during 2008 from the 20% average growth in connections of 2007.
So, clearly, while the developing countries are seeing continued large growth, the broadband market in Europe and the United States has stabilised.
The UK is also slightly bucking a trend to ditch landlines, experiencing just a 1% drop in lines, compared to an average of 3%. It may well be for the good reason that among the twelve countries being compared, the UK came out as the third biggest chatter-boxes, notching up 190 minutes per month on fixed line calls, compared to an average for the other countries of 150 minutes. Only Swedes and Americans spend longer on fixed line calls.
It has compared the cost of bundling together a fixed line phone with broadband, as well as allowing for moderate mobile phone use and some pay television. The results show that at a price of around £102 per month, the UK is cheapest of the six featured countries, 28% cheaper than the next cheapest region, Italy. The survey also included France, Germany, USA and Spain.
The industry watchdog claims this is mainly down to price competition in the UK which between July 2008 and July 2009 saw broadband prices reduced by 14% and the cost of using a mobile phone came down 8%.
The UK had the cheapest mobile phone calls of the six countries surveyed as well as the cheapest single-service broadband connection. Only Italy provides cheaper land line calls.
BRIC nations pushing broadband growth
Ofcom then looked at twelve countries, including more European countries, Canada, the USA and Japan, as well as the fast-developing BRIC nations (Brazil, Russia, India and China). The watchdog claims to have found growth in the UK’s level of broadband penetration is second only to the Netherlands (at 23 connections for every 100 people in 2008, compared to 25 in the Netherlands).
The BRIC countries, however, are seeing broadband connections growing at a staggering rate of 40% each year, which is way above the average across all 12 countries of 9%. This average has halved during 2008 from the 20% average growth in connections of 2007.
So, clearly, while the developing countries are seeing continued large growth, the broadband market in Europe and the United States has stabilised.
The UK is also slightly bucking a trend to ditch landlines, experiencing just a 1% drop in lines, compared to an average of 3%. It may well be for the good reason that among the twelve countries being compared, the UK came out as the third biggest chatter-boxes, notching up 190 minutes per month on fixed line calls, compared to an average for the other countries of 150 minutes. Only Swedes and Americans spend longer on fixed line calls.