UK CHEAPER THAN CALIFORNIA FOR UNMETERED INTERNET ACCESS

14 Jun 2001 12:00 AM

Unmetered dial up Internet access for consumers is cheaper in the UK than it is in California and Germany, according to new research published today by Oftel.

Oftel''s latest international benchmarking report shows UK prices at February 2001 for key telecoms services were still amongst the lowest in Europe, and compare favourably with the USA.

Key findings of the research include:

- For residential heavy Internet users in the UK unmetered Internet access costs from #18 per month - as compared to the equivalent of #19 per month in California, and #39 per month in Germany. Unmetered dial-up Internet access is not available in France or Sweden;

- For a typical residential UK phone user, costs are from around 19 pounds per month, less than Germany (20 pounds) or France (24 pounds);

- For occasional users of a mobile phone, costs are from around 12 pounds a month, cheaper than France (16 pounds) or Italy (18 pounds);

- some business telecoms services are more expensive than in other countries, but prices continue to fall in the UK.

David Edmonds, Director General of Telecommunications, said:

''With the introduction of unmetered tariffs which are now widespread in the UK, Internet access is cheaper here than in California and a number of other European countries.

''UK consumers continue to get a good deal for key telecoms services compared with other European countries.

''Cheap Internet access has been stimulated by Oftel''s action to encourage unmetered services and choice, enabling operators to supply unmetered Internet access to customers using BT''s network.

''Over a third of UK Internet consumers now opt for some form of unmetered access, while dial up unmetered packages are not yet available for Swedish and French consumers.''

David Edmonds said that Oftel''s work had delivered lower prices for consumers.

''Oftel''s work to promote competition and choice has helped deliver lower prices for consumers for dial up Internet access, fixed line telephony and mobile phone services.

''Oftel''s strategy is to achieve the best deal for consumers through a competitive and dynamic telecoms market. Today''s benchmarking survey shows that the deals available for consumers are amongst the best in Europe and America.''

Notes to editors

1. International benchmarking study of dial-up PSTN Internet access, mobile and fixed line services is available on Oftel''s website at www.oftel.gov.uk/publications/research/benc0601.htm. Hard copies are available to the press from Oftel''s press office, tel 020 7634 8991, or to the public from Oftel''s research and intelligence unit, tel: 020 7634 8761.

2. This report looks at dial-up PSTN Internet access, mobile services (including both domestic and roaming services) and fixed line (PSTN and ISDN) services.

Countries considered in the study were France, Germany, Italy (mobile only), Sweden, United Kingdom and the US States of Ohio and California (not mobile).

3. The analysis and drafting of this report has been carried out by Oftel. The models developed by Oftel used to generate the results contained in this report have been audited by an independent consultant, Analysys Ltd. The tariff data used in this report has been collected by consultants Total Romtec for Internet access and mobile services and by consultants Tarifica Ltd for fixed line services. The results presented are based on a snapshot of prices as at 19/20 February 2001 for Internet and mobile/fixed line services respectively. Figures for monthly unmetered Internet access are based on line rental and service provider subscription charges.

4. The results quoted above are illustrative values and are based on the average of the two cheapest available deals. The sterling equivalent value of prices in other countries has been calculated using purchasing power parity exchange rates as of February 2001. The report considers a wide range of user profiles and calculates an overall index. For residential PSTN (fixed line) services, the results quoted describe a user with a level of usage close to average, with a high proportion of local and off-peak calls (basket 3A in the report). For mobile, the results quoted are for profile ''Q3 comb'' which has a relatively low level of usage and calls spread over daytime, evening and weekend.

5. The study was carried out 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 any other factors that they feel are relevant to their needs