Wednesday, April 08, 2009

The cost of being in touch

Spain has some of the most expensive charges for mobile phone calls and ADSL Internet connections in Europe according to the European Commission's annual telecommunications report released recently.

The average cheapest mobile phone offer in Spain (including calls and text messages) was 35.89 euros per month, the highest in the entire EU.

As for Internet users, the average monthly cost of an ADSL line in Spain is 45.38 euros which is far above the EU average of 36.89.

The commission's report highlights the slow rate at which ADSL is contracted by users in Spain where 20.2 % of the potential users have ADSL against the EU average of 22.9%.

The high cost is seen as the key factor delaying a greater implantation of ADSL throughout the country.

Meanwhile, the use of high-speed mobile phone connections in Spain (25.9% of the total) is practically double the EU average  of 13%.

COMPETITION PROBLEM

"There is a competition problem" in Spain, said the commissioner for information society and media, Viviane Reding. "Where there is little competition, prices don't come down as much," said the commissioner, who indicated she has plans to "have conversations" with government representatives and service providers in Spain.

Meanwhile, last week representatives from all the EU-27 countries agreed to support legislation that will reduce charges for calls, messages and Internet connections made outside the mobile phone user's home country.  The regulation is expected to be formally approved by the EU parliament in late April and come into effect on July 1, setting maximum prices and a progressive price reduction over the next two years.

Meantime in Australia, the Government have announced that they will commence work on the promised fibre optic infrastructure that will provide 90% of homes and companies with connection speeds up to 100Mbs. For the other 10% of the country, the Government has promised wireless access at up to 12Mbs. 

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