Ref: 70/02
Date: 6 December 2002

UK consumers are taking up broadband services at a faster rate than other key European countries and are paying similar prices, according to new research published today by Oftel.

Oftel’s latest benchmarking of telecoms services shows that the current rate of growth in the UK for new broadband services is higher than in France, Germany, Sweden and also the USA.

Oftel’s research also found that residential broadband prices in the UK are as cheap as in France, Germany or the USA. DSL prices have fallen 27 per cent since February 2002, with cable modem prices continuing to be cheaper than DSL prices.

And for basic broadband business services, the UK is still cheaper than all of the other countries surveyed.

The total number of broadband connections is below these other surveyed countries, mainly because they began rolling out broadband services before the UK.

David Edmonds, Director General of Telecommunications, said today:

"This research shows that consumers continue to benefit from the action taken by Oftel to promote competition.

"Broadband connections have now reached 28,000 a week in the UK. This puts the UK in a strong position to build on the one million connections it passed recently during October.

"The price of broadband remains on a par with France, Germany and Sweden and in many cases, particularly for businesses, the UK is the cheapest of all the countries surveyed.

"Broadband fixed wireless access and satellite are developing broadband platforms, and the number of unbundled local loops is increasing as businesses sign up to services offered by operators. Oftel has included these in its research for the first time and will continue to track their development in the future.

"The UK broadband market benefits from competition between the network suppliers, BT and the cable companies. There is also a flourishing level of competition between service providers which means UK consumers have a choice of around 200 DSL providers, and cable modems."

Oftel’s research showed that for basic, dial-up Internet access, UK consumers continue to get a good deal, particularly for unmetered packages.

Oftel has also published a benchmarking report for the mobile market which shows that UK prices are, on average, similar to those in France, Germany, Italy and Sweden. Handset prices and tariffs have fallen in the UK, strengthening the UK’s relative position against the other surveyed countries.

Notes to editors

1. International benchmarking study of Internet access (dial-up and broadband) is available on Oftel’s website at www.oftel.gov.uk/publications/research/2002/benchint1202.htm and International benchmarking study of mobile services is at www.oftel.gov.uk/publications/research/2002/benchmob1202.htm. Hard copies are available to the media from the press office on 020 7634 8991 and to the public from the Research and Information Unit on 020 7634 8761.

2. The reports look at: Internet access via dial-up PSTN, DSL and cable modem; and mobile services. The countries considered in the studies were France, Germany, Italy (mobile only) Sweden, the UK and the US states of Ohio and California (not included for mobile). The analysis and drafting of the reports was carried out by Oftel. The tariff data used in the reports have been collected by consultants HI Europe. The results are based on a snapshot of prices as at August 2002.

3. The survey was conducted to benchmark UK prices against those of a number of other countries and US states and should not be seen as recommended 'best buys'. When making a purchase decision, consumers will want to have the latest pricing information, as well as taking into account other factors such as service features, personal usage patterns, terms and conditions and indeed any other factors that they feel are relevant to their needs.