Oftel research shows lower prices for broadband

Oftel research shows that UK prices for broadband services are now as cheap as or cheaper than in other European countries and the US.

Prices for consumer DSL have dropped considerably since August 2001 and are now cheaper than in France or Germany.

Oftel's latest international benchmarking study of Internet access, published in June 2002, compares UK prices for broadband (DSL and cable modems) with those in France, Germany, Sweden and the US as at February 2002.

The research also includes a snapshot of prices as at April 2002 to reflect the cut in BT's DSL wholesale prices.

The results show that in the UK:

• broadband prices for consumers are as cheap as or cheaper than in France, Germany and the USA - and packages are now available for as little as £20 a month;
• since the beginning of the year DSL prices have been cut by up to 39% and following recent price cuts, the UK is now cheaper than France and Germany for consumer DSL. For some business services the UK is now the cheapest country surveyed;
• as consumers get a better deal, take up continues to rise and user numbers have increased by 100% since the beginning of the year. There are now over 750,000 broadband connections; and
• 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 also more competition from cable providers in the UK than in France and Germany.

Takeup of broadband services continues to rise. At the time of writing the UK had over 837,000 broadband connections
(340,000 DSL and 492,000 cable modem).

Broadband price development

For further information on Oftel's benchmarking programme contact Elizabeth Harding (tel: 020 7634 8926 / e-mail: elizabeth.harding@oftel.gov.uk).