400 million broadband users are confused about the prices, speed and range of choices for DSL connections — according to EU data released today.
According to four new studies, there is virtually no single plan or coherence in DSL service markets across the EU. Consumers are also confused by the different information provided by operators, making it difficult for them to choose the best one for them.
Prices for the most common DSL connections can be up to four times higher in some Member States, even after taking purchasing power into account.
66% of citizens do not know what DSL connection speed they have signed a contract for.
Consumers receive, on average and across all types of wired DSL connections, 75% of the broadband speed they have signed a contract for. The largest deviation is observed for xDSL connections, where it reaches 36%.
While successive EU telecoms reforms have helped to change the telecoms landscape in the EU, the sector still largely operates on the basis of 28 different national markets. Both consumers and operators face different prices and different rules. The European Parliament will vote next week on a package of measures for the Telecoms Single Market to deliver the #ConnectedContinent, offering consumers more transparency, more rights and better services.
Huge price differences for #broadband connections
European Commission Vice-President @NeelieKroesEU said: "There is no single market for the internet and this must change. There is no good reason why one person should pay more than 4 times more than another for the same broadband connection."
The new study shows a price difference of up to 400% between EU countries for advertised fixed DSL in the 12-30 megabits per second (Mbps) range, which most Europeans subscribe to. Prices start from €10 to €46 per month, depending on where you live, and could go up to €140 per month.
Price differences: the cheapest advertised DSL services are available in Lithuania (from €10.30), Romania (from €11.20) and Latvia (from €14.60). In other countries the cheapest offer can reach €46.20 (Cyprus), while in Spain (€38.70) and Ireland (€31.40) it is not much lower. The largest domestic price variation is observed in Poland, with offers ranging from €20 to €140, and in Croatia — from €30 to €121.
While some differences between markets can be justified on the basis of differences in costs and incomes, the current lack of coherence is largely due to strong market fragmentation. The #ConnectedContinent will help eliminate price differences, giving consumers more power and investors a friendlier environment across the EU Single Market, and will enable operators to sell their services to consumers in other countries.
Discrepancies between advertising and reality
Another study by the company @SamKnows, conducted over 7 billion internet connection measurements of nearly 10,000 volunteers and found that actual download speed can be up to 64% lower than advertised.
European Commission Vice-President @NeelieKroesEU said: "Although the networks on which broadband connections are based are improving, the gap between advertised and actual speeds is as wide as in 2012. This confirms the need to strengthen and harmonise consumer rights, as foreseen in the Connected Continent package.
"It's time for companies to start working together to find better ways to advertise and explain their products. That's the reaction I hope to see from these findings."
Thanks to the proposed reforms under the #ConnectedContinent, new rights will be granted, such as the right to contracts in plain language and with more comparable information. In particular, operators must provide accurate information on the actual data speed available. Consumers will have more rights, such as the right to change provider or contract, to terminate their contract if the agreed internet speeds are not provided, and to request that emails be forwarded to a new email address after changing internet service provider.
Volunteers needed:
The @SamKnows study will run until the end of 2014, with a further measurement planned. European consumers can measure the performance of their own provider by joining a community of volunteers from all 28 EU countries, as well as Iceland and Norway. Selected consumers will be sent a small device that plugs into their home internet connection. This device will run a series of automated tests when the line is not in use. It will determine the speed and performance of the broadband connection.
The history of the four studies
BIAC study
The European Commission is publishing a 2013 comparative study on DSL internet access (BIAC) carried out in all EU Member States, as well as in Canada, Iceland, Japan, South Korea, Iceland, Liechtenstein, the former Yugoslav Republic of Macedonia, Norway, California, Colorado, New York State, Switzerland and Turkey. The study is mainly based on information collected between 1 and 15 February 2013. The study analyses the offers of internet service providers. The information for this period has been compared, where appropriate, with similar information previously collected in February 2011 and February 2012.
Study @SamKnows
This study, conducted by @SamKnows on behalf of the European Commission, measures the difference between the internet speed consumers pay for and the internet speed they actually receive. The results are based on performance during peak hours, i.e. from 7:00pm to 11:00pm on weekdays. This is the second study by @SamKnows (with a third study planned for 2014).
It is based on a methodology that uses hardware devices and provides the most accurate and independent results on internet performance regardless of access technology and home connection setup. This methodology has also been used by national regulators in the US, UK, Brazil and Singapore.
A total of 7,184,604,603 measurements were taken from 9,467 devices in 30 countries within the framework of 63,666,843 tests.
The second report was completed independently of the Internet service providers, who are nevertheless invited to participate in the third report.
Eurobarometer survey
The Eurobarometer survey measures users' opinions on telecommunications services in all EU Member States in February 2014.
COCOM report
The Commission publishes data collected within the Communications Committee (COCOM) since 2003 on the number of broadband subscriptions in Member States. The report is based on data from relevant ministries and regulators, as well as other broadband-related statistics published by the Commission (on coverage, wholesale and retail prices and State aid cases for broadband networks).
Source: secnews.gr
