Thursday, December 30, 2010

Internet, 21% more expensive than in the EU

Broadband in Spain remains far more expensive than in the European Union. And Telefonica, one of the incumbents (also called incumbent) less affordable in the EU. In addition, the spread between the Spanish and European rates increases. These are the main conclusions of the report of the Telecommunications Market (CMT).

The interim report, which presents the best rates comparative to June 2010 in different EU countries, notes that the packages of broadband and voice services to medium speed (2 to 10 megabits per second), the most common because they represent 60% of the total, 21.2% more expensive in Spain compared to the average European offers the best prices adjusted for purchasing power parity (PPP), ie taking into account the income level of each country .

Thus, the best Internet packages and calls at this rate can be hired for 32 euros while the European average of 26.4 euros. For speeds above 10 Mbps, the best in the Spanish market (36.3 euros) is 28.7% above the average of the best in the EU (28.2 euros). Packages low speed (less than 2 Mbps), which represent only 8.5% of lines are 10.3% more expensive compared to the EU average.

In addition, growing price gap with the EU. Thus, in the December report the offer of between 2 and 10 megs was 10.5% more expensive, half the cast by the last report. The study also emphasizes the high cost of Telefónica in respect of their European counterparts (Deutsche Telekom, KPN, BT, Eircom, Telecom Italia, etc.).

In this section, the Spanish incumbent's best offer on the stretch from 2 to 10 megs is 84.6% above the average of the best offers in Europe, with an outlay of 58.7 euros, compared to 31.8 euros on average in Europe. The CMT said in his report that this price difference, which has remained almost constant over the past two years has led the capture of customers by alternative operators Telefónica.

These cable and add a combined market share of almost 47% versus 43% in 2008. Much of the Spanish operators refute this report because it believes that its methodology does not take into account the promotions or discounts. Telephone number the differential with other historical in 25% instead of 84.6% saying the CMT.

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