Price trends for telephoni and broadband - first half year 2009 - PTS-ER-2009:30
24/11/2009
Recently, the price of electronic communications services for most users has reduced more slowly compared with the rapid price drop we observed in the market at the beginning of the decade. However, prices have continued to fall for mobile phone users who send a large number of text messages, for fixed telephony users who make a lot of calls to mobile phones and for mobile broadband.
During the first half of the 2000s, mobile call and data services constituted the sub-market that experienced the most rapid fall in prices in the electronic communications market. However, prices for most types of user have reduced more slowly over the past year. The monthly cost of the most inexpensive mobile telephony offer only fell by 5 per cent for the average user, by 2 per cent for major users, and by no less than 29 per cent for users who send a large number of text messages. The sharp fall in prices for text messaging also had an impact on the use of SMS services. A statistical report by the Swedish Post and Telecom Agency (PTS) entitled 'The Swedish Telecommunications Market' shows that the number of text messages sent per private subscription and month increased from 84 during the first six months of 2008 to 132 during the corresponding period in 2009. PTS's 'Survey of Individuals' shows that this increased use of text messaging is mainly attributable to young users.
During the 2000s, the price of fixed telephony services has remained significantly more constant than for mobile call and data services. However, the lowest price for fixed telephony for the average user reduced by 11 percent over the past year, and the price for users who make a large number of calls to mobile phones fell by 19 per cent. The price analysis also shows that fixed IP telephony is less expensive than traditional fixed telephony and that the difference between these technologies has grown over the past six months as a consequence of TeliaSonera's price increases for the Telia Bas and Wholesale Line Rental (WLR) products. PTS's price study also shows that the average user would save SEK 112 by cancelling their fixed telephony subscription and completely switching to mobile telephony. Price trends are also having an impact on the use of fixed telephony; statistics from the 'Swedish Telecommunications Market' show that 28 per cent of private fixed telephony subscribers had completely switched to IP or mobile telephony during the period of the survey (that is from 2003-03-31 to 2009-06-30).
In the 2000s, the broadband sub-market has gradually grown in significance in the electronic communications market. However, prices for the most inexpensive nationwide offers of broadband with transmission capacities of at least 2 Mbps, at least 8 Mbps and at least 20 Mbps have only declined marginally over the past year, while the most inexpensive offer for mobile broadband fell by 16 per cent during the same period. Many of the small stakeholders do still offer some local broadband services. An analysis of these local offers shows that broadband subscriptions are being sold at prices that are below the national average in areas where there is a high level of fibre network coverage and where several service providers are competing to sell broadband subscriptions via both fibre and xDSL. In contrast, prices are above the national average in areas with no fibre coverage and where only one service provider offers broadband subscriptions.
In addition to the general price trends, PTS has also observed a number of phenomena as regards the range of electronic communications services that make it difficult for consumers to make informed choices - se the report.