Tuesday, January 08, 2008

Higher speed - higher price

Telefónica have finalised the migration of two million clients from  1 to 3 Mbits/sec ADSL. 

At the moment, 54% of the Spanish homes  can get up to 10 Mbs.  By 2010 80% will be able to get this higher speed.

The following step will be to 30 Mbs.  At the moment they are running a test pilot of this service in 1,000 homes in Madrid and Barcelona.   Telefónica plan to offer 30 Mbs fiber connections to 40% of the population by 2010. 

In addition, Telefónica is also planning to offer 1 Mb connections with a download limit of 20Gbs per month for  29.9 euros a month (on top of the the monthly line rent of 13.7 euros  plus IVA). That is 10 euros per month less than their 3Mb service. For the majority of people, who are not heavy users, that is a worthwhile saving.

The 3Mb duo package costs us 73.87 euros per month. Apart from the 40.90€ cost of the ADSL/phone call package, there is line rental of 17.78€ (including the phone) and ADSL maintenance at 5€ to add on. Then you have  IVA of 10.19€ to pay. The cost doesn't compare well with the Virgin package of TV, ADSL and phone that my daughter has in Wolverhampton for £30 per month.

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