Broadband prices for consumers in the UK are as cheap as in
France, Germany or the USA, according to new research published
yesterday by telecoms watchdog Oftel. Following recent wholesale
price cuts, the UK is now cheaper than France and Germany for
consumer DSL (digital subscriber line).
Prices for DSL have fallen by 39% since the beginning of the
year and, according to Oftel, user numbers have increased by 50%.
The UK now has over 600,000 broadband connections and Oftel
estimates that there are over 20,000 new connections every
week.
Oftel adds that the UK has a more competitive market for DSL
than either France or Germany, with cheaper wholesale prices than
France and more competition from service providers. In addition,
there is more competition from cable operators in the UK than in
France or Germany. Oftel estimates that 50% of connections are
provided by service providers other than BT.
David Edmonds, Director General of Telecommunications, said:
"The UK is as cheap or cheaper for consumer
broadband than all countries surveyed except Sweden. Taking DSL on
its own, the UK is now cheaper than either France or Germany, as
prices to consumers have fallen in line with reductions to the
wholesale price."
On dial-up Internet access, unmetered services in the UK are
cheaper than all other countries in the study by at least 9%.
Oftel’s
international benchmarking study of internet access (dial-up
and broadband)