Broadband tariffs increased by 5% on average across the EU27 markets, according to an analysis of Q1 2012 European broadband tariffs published by Quantum-Web.  

The analysis reveals that the main driver of EU27 overall increases in Q1 2012 were tariff rises in Southern and Eastern Europe, Belgium and the UK.

 Incumbents, ISPs and cable companies in Germany and other Nordic countries have left their tariffs unchanged.  In certain cases, eg Deutsche Telekom (the German incumbent), operators have increased their broadband speed at no extra cost.

The major reasons for the price increases in Q1  2012 were:

1-     VAT (Value Added Taxes) increases in various European countries.

2-     Indexation applied by the operators as a mechanism to unwinding the impact of inflation on companies' revenue and enhancing their purchasing power.

Overall, the analysis underlines the increase in European broadband prices while drawing attention to the diversity of broadband markets in terms of availability of broadband technologies such as 4G and FTTx, stand-alone pricing and bundled broadband packages stratified by speed.

For instance, in case of 2Mbps-8Mbps download speed band, wherever FTTx  technologies were available, the price of fibre access was cheaper than xDSL technology. At the same time, similar offerings using Satellite or WiMAX technologies were more expensive due to higher CPE (Customer Premises Equipment) and delivery costs. (Diagram 1).

Diagram1- Unweighted average monthly residential broadband tariff including the nonrecurring costs in Euro excluding VAT (2Mbps-8Mbps)

On the higher speed bands such as 24-100Mbps download speed band, 4G and FTTx technologies were already offered at more convenient prices compared to the traditional technologies of xDSL and Cable Modem. (Diagram 2).

Diagram2- Unweighted average monthly residential broadband tariff including the nonrecurring costs in Euro excluding VAT (24Mbps-100Mbps)

Another interesting finding which emerged from our EU27 Q1 2012 broadband tariffs analysis related to the pattern of stand-alone and bundled prices across different access technologies. European operators seemed to offer more balanced tariffs for their bundled services (Diagram 3).

Diagram3- Unweighted average monthly residential broadband tariff including the nonrecurring costs in Euro excluding VAT (stand-alone and bundled tariffs)

Our Q1 2012 EU27 European broadband tariffs analysis is based on extensive research conducted using data from 102 operators featured across 27 European countries and some 1750 broadband tariff packages. It presents the most far-reaching tariff analysis yet to address broadband user pricing accompanied by in depth country specific data and analysis.

Uniquely, we can present our EU27 European Broadband Tariffs analysis by:

·         Operator

·         Country

·         Access technology

·         Residential and business tariffs

·         Speed band

·         Stand-alone and bundled packages

 

For more information about the findings of this press release and the European Broadband Tariffs Database or Quarterly Broadband Tracker contact Qmars Safikhani, Head of Analytical Research at Quantum-Web +44 (0) 20 3286 9570 or This email address is being protected from spambots. You need JavaScript enabled to view it.