Broadband prices plummet

15 Jun 2007

German newspaper Heise Online reports that prices for broadband internet connections in Germany are plummeting. In Cologne the Association of Providers of Telecommunications and Added-Value Services (VATM) announced that fees for DSL fell by an average of 37% between 2003 and 2006. The information is based on a study conducted by Honnefer WIK-Consult. Four years ago, a DSL hook-up cost EUR66.91 per month on average. By 2006 the average was EUR42.28. In 2003, the monthly price for a 1Mbps connection averaged EUR65, a figure which fell to EUR37 by 2006. A 6Mbps connection still cost EUR50 per month in 2005 but had dropped to EUR43.50 a year later. VATM says that growing competition is the main reason for the drop in prices. The study was based on the retail rates charged by AOL/Hansenet, Arcor, Freenet, T-Online, United Internet and Versatel, which VATM claims serve 90% of the DSL market in Germany.