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London (pte011/24.11.2004/10:15) - Broadband costs in Europe have fallen by almost a quarter since the beginning of the year, according to the London-based consultants BroadGroup. The "European Pricing Report", published by Quantum-Web and distributed by BroadGroup, surveyed 109 operators featured across 36 European countries and 455 tariff packages. The average monthly price for 512Kbps and 1Mbps services have dropped by 23 percent since January, while the cost of a 2Mbps line has fallen by 24 percent (see http://www.broad-group.com/broadband/pricing.asp ).
According to the report, the numbers of Broadband packages available have risen for all three of the speeds surveyed: by 74 percent for 512Kbps, by 40 percent for 1Mbps and by 34 percent for 2Mbps. The Higher Speed packages availability, namely 4Mbps and 8Mbps, showed the same growth trend but prices dropped less dramatically, leaving more room for price elasticity for content providers.
"The Broadband Pricing Report in Europe report covers far more than just monthly fees", explained Qmars Safikhani, founder of Quantum-Web. "Cross-sectional analysis implies the inclusion of a series of variables taken into account such as initial costs (installation, connection and one-off cost), equipment, package value-added such as download allowances, anti-spam, filters, push technology, available space for e-mails, personal web space and gaming technology plus seasonal promotion". According to Safikhani, as broadband speed pricing and its adoption increasingly collide, it is critical to offer a perspective that reveals the entire broadband landscape.
According to BroadGroup, by including alternative broadband access technologies available in the European market, the report provides benchmarks for similar speeds. The report analysed 295, 350 and 455 price packages in Q1, Q2 and Q3 respectively.
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