Telecoms Tariff Data

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Report on

Telecoms Tariff Data

as of January 2000

Produced for:

European Commission DG Information Society

The opinions expressed in this Study are those of the authors and do not necessarily reflect the views of the European Commission.

ECSC-EC-EAEC, Brussels - Luxembourg 2000

Prepared in May 2000 by:

Teligen Limited PO Box 39

Richmond-upon-Thames Surrey TW9 1WT United Kingdom

tel: +44 181 334 5600 fax: +44 181 334 5610 e-mail: [email protected]

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APPENDICES: Important: These appendices are only available for use within the European Commission, and should not be distributed to other parties. Appendix A: Internet access and service information (Document) Appendix B: PSTN discount packages (Document) Appendix C: International ISDN call charges for data calls (Document) Appendix D: PSTN tariffs (Spreadsheet file) Appendix E: ISDN tariffs (Spreadsheet file) Appendix F: Leased line tariffs (Spreadsheet file) Appendix G: GSM post-paid tariffs (Spreadsheet file) Appendix H: GSM pre-paid tariffs (Spreadsheet file) List of Tables in this report: TABLE2.1 EXCHANGE RATES ANDVATPERCENTAGES(1998-1999) ... 21

TABLE3.1 PSTNCONNECTION CHARGES2000 (IN EURO EXCLUDINGVAT)... 22

TABLE3.2 PSTNMONTHLY RENTAL CHARGES2000 (IN EURO EXCLUDINGVAT) ... 23

TABLE3.3 PSTNLOCAL CALL CHARGES,PEAK TIME(11:00WEEKDAYS) (IN EURO EXCLUDINGVAT) 25 TABLE3.4 PSTNLOCAL CALL CHARGES,OFF-PEAK TIME(20:00WEEKDAYS) (IN EURO EXCLUDING VAT)26 TABLE3.5 PSTNLOCAL CALL CHARGES,ECONOMY TIME(CHEAPEST RATE POSSIBLE) (IN EURO EXCLUDINGVAT)... 26

TABLE3.6 REGIONAL CALL CHARGES AT PEAK TIME(11:00WEEKDAYS) (IN EURO EXCLUDINGVAT).. 29

TABLE3.7 REGIONAL CALL CHARGES AT OFF-PEAK TIME(20:00WEEKDAYS) (IN EURO EXCLUDING VAT)30 TABLE3.8 REGIONAL CALL CHARGES AT ECONOMY TIME(CHEAPEST RATE POSSIBLE) (IN EURO EXCLUDINGVAT)... 31

TABLE3.9 NATIONAL(LONG DISTANCE)CALL CHARGES AT PEAK TIME(11:00WEEKDAYS) (IN EURO EXCLUDINGVAT)... 32

TABLE3.10 NATIONAL(LONG DISTANCE)CALL CHARGES AT OFF-PEAK TIME(20:00WEEKDAYS) (IN EURO EXCLUDINGVAT) ... 33

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TABLE3.11 NATIONAL(LONG DISTANCE)CALL CHARGES AT ECONOMY TIME(CHEAPEST RATE

POSSIBLE) (IN EURO EXCLUDINGVAT) ... 33

TABLE3.12 CALL CHARGES TO MOBILE PHONES AT PEAK TIME(11:00WEEKDAYS) (IN EURO EXCLUDING VAT) 35 TABLE3.13 CALL CHARGES TO MOBILE PHONES AT OFF-PEAK TIME(20:00WEEKDAYS) (IN EURO EXCLUDINGVAT)... 36

TABLE3.14 CALL CHARGES TO MOBILE PHONES AT ECONOMY TIME(CHEAPEST RATE POSSIBLE) (IN EURO EXCLUDINGVAT) ... 36

TABLE3.15 AVERAGE INTRA-EUCALL CHARGES AT PEAK TIME(11:00WEEKDAYS) (IN EURO EXCLUDINGVAT)... 38

TABLE3.16 AVERAGE INTRA-EUCALL CHARGES AT OFF-PEAK TIME(20:00WEEKDAYS) (IN EURO EXCLUDINGVAT)... 39

TABLE3.17 AVERAGE INTRA-EUCALL CHARGES AT ECONOMY TIME(CHEAPEST RATE POSSIBLE) (IN EURO EXCLUDINGVAT) ... 39

TABLE3.18 PEAK TIME CALL CHARGES FROM AND TOBELGIUM (EURO EXCLUDINGVAT) ... 41

TABLE3.19 PEAK TIME CALL CHARGES FROM AND TODENMARK(EURO EXCLUDINGVAT) ... 41

TABLE3.20 PEAK TIME CALL CHARGES FROM AND TOGERMANY (IN EURO EXCLUDINGVAT) ... 42

TABLE3.21 PEAK TIME CALL CHARGES FROM AND TOGREECE (IN EURO EXCLUDINGVAT) ... 42

TABLE3.22 PEAK TIME CALL CHARGES FROM AND TOSPAIN (IN EURO EXCLUDINGVAT) ... 43

TABLE3.23 PEAK TIME CALL CHARGES FROM AND TOFRANCE (IN EURO EXCLUDINGVAT) ... 43

TABLE3.24 PEAK TIME CALL CHARGES FROM AND TOIRELAND (IN EURO EXCLUDINGVAT)... 44

TABLE3.25 PEAK TIME CALL CHARGES FROM AND TOITALY (IN EURO EXCLUDINGVAT) ... 44

TABLE3.26 PEAK TIME CALL CHARGES FROM AND TOLUXEMBOURG (IN EURO EXCLUDINGVAT) ... 45

TABLE3.27 PEAK TIME CALL CHARGES FROM AND TO THENETHERLANDS(IN EURO EXCLUDINGVAT) 45 TABLE3.28 PEAK TIME CALL CHARGES FROM AND TOAUSTRIA (IN EURO EXCLUDINGVAT)... 46

TABLE3.29 PEAK TIME CALL CHARGES FROM AND TOPORTUGAL (IN EURO EXCLUDINGVAT)... 46

TABLE3.30 PEAK TIME CALL CHARGES FROM AND TOFINLAND (IN EURO EXCLUDINGVAT)... 47

TABLE3.31 PEAK TIME CALL CHARGES FROM AND TOSWEDEN (IN EURO EXCLUDINGVAT) ... 47

TABLE3.32 PEAK TIME CALL CHARGES FROM AND TOUNITEDKINGDOM (IN EURO EXCLUDINGVAT) 48 TABLE3.33 PSTNZONE DEFINITIONS1999... 55

TABLE4.1 ISDNCONNECTION CHARGES(IN EURO EXCLUDINGVAT) ... 56

TABLE4.2 ISDNMONTHLY RENTAL CHARGES(IN EURO EXCLUDINGVAT)... 57

TABLE4.3 RESIDENTIALBASIC RATE RENTAL CHARGES2000 (IN EURO EXCLUDINGVAT) ... 58

TABLE4.4 INTERNATIONALISDNCALL CHARGES FOR64KBIT/S CALLS2000 ... 60

TABLE5.1 CONNECTION CHARGES FOR2 MBIT/S NATIONAL CIRCUITS (IN EURO EXCLUDINGVAT) ... 62

TABLE5.2 MONTHLY RENTAL FOR2 MBIT/S NATIONAL CIRCUITS, 1998-1999 (IN EURO EXCLUDING VAT)63 TABLE5.3 MONTHLY RENTAL PRICE CHANGES FOR2 MBIT/S CIRCUITS FROM1999TO2000... 64

TABLE5.4 CONNECTION CHARGES FOR34 MBIT/S NATIONAL CIRCUITS2000 (IN EURO EXCLUDING VAT)66 TABLE5.5 MONTHLY RENTAL CHARGES FOR34 MBIT/S NATIONAL CIRCUITS 1999 - 2000 (IN EURO EXCLUDINGVAT)... 66

TABLE5.6 CONNECTION CHARGES FOR155 MBIT/S NATIONAL CIRCUITS2000 (IN EURO EXCLUDING VAT)67 TABLE5.7 MONTHLY RENTAL CHARGES FOR155 MBIT/S NATIONAL CIRCUITS1999 - 2000 (IN EURO EXCLUDINGVAT)... 67

TABLE5.8 MONTHLY RENTAL CHARGES FOR INTERNATIONAL2 MBIT/S HALFCIRCUITS (IN EURO EXCLUDINGVAT)... 68

TABLE5.9 EUROPEAN DESTINATIONS FOR NEAR AND DISTANT CIRCUITS... 68

TABLE5.10 PRICE CHANGES FROM1999TO2000IN2 MBIT/S INTERNATIONAL HALF-CIRCUITS... 69

TABLE6.1 CONNECTION CHARGES FORHIGHVOLUMEDIGITALMOBILE SERVICES1999 - 2000 (IN EURO, EXCLUDINGVAT)... 73 TABLE6.2 CONNECTION CHARGES FORLOWVOLUMEDIGITALMOBILE SERVICES1999 - 2000 (IN

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TABLE6.4 MONTHLY RENTAL CHARGES FORLOWVOLUMEDIGITALMOBILE SERVICES1999 - 2000

(IN EURO, EXCLUDINGVAT) ... 76

TABLE6.5 NATIONALHIGHVOLUME CALL CHARGES TO FIXED NETWORK FOR A3MINUTE CALL1999 - 2000. (IN EURO, EXCLUDINGVAT)... 77

TABLE6.6 NATIONALLOWVOLUME CALL CHARGES TO FIXED NETWORK FOR A3MINUTE CALL1999 - 2000. (IN EURO, EXCLUDINGVAT)... 78

TABLE6.7 MOBILE CALL CHARGING METHODS2000 ... 79

TABLE6.8 TIME BAND INFORMATION2000 ... 80

TABLE6.9 COMPARISON OF3MINUTE PEAK TIME CALL CHARGES FOR MOBILE TO FIXED VS.FIXED TO MOBILE2000 (IN EURO EXCLUDINGVAT) ... 82

TABLE6.10 NATIONALHIGHVOLUME3MINUTE CALL CHARGES TO OTHER MOBILE PHONES IN SAME NETWORK1999 - 2000 (IN EURO,EXCLUDINGVAT) ... 83

TABLE6.11 NATIONALLOWVOLUME3MINUTE CALL CHARGES TO OTHER MOBILE PHONES IN SAME NETWORK1999 - 2000 (IN EURO,EXCLUDINGVAT) ... 84

TABLE6.12 INTERNATIONALHIGHVOLUME3MINUTE CALL CHARGES FOR CALLS TO FIXED NETWORK 1999 - 2000 (IN EURO,EXCLUDINGVAT) ... 85

TABLE6.13 INTERNATIONALLOWVOLUME3MINUTE CALL CHARGES FOR CALLS TO FIXED NETWORK 1999 - 2000 (IN EURO,EXCLUDINGVAT) ... 86

TABLE6.14 INTERNATIONAL CALL TIMEBANDS... 87

TABLE6.14 INTERNATIONAL CALL TIMEBANDS(CONT) ... 88

TABLE6.15 FIXED CHARGES FOR PRE-PAID PACKAGES2000 ... 89

TABLE6.16 NATIONAL CALL CHARGES FOR PRE-PAID PACKAGES2000 ... 90

TABLE6.17 INTERNATIONAL CALL CHARGES FOR PRE-PAID PACKAGES2000 ... 91

TABLE7.1 DIAL UP COSTS USINGPSTN ... 93

TABLE7.2 ANNUALISPCOSTS FORBUSINESS USER PACKAGES, 2000 (IN EURO EXCLUDINGVAT)... 95

TABLE7.3 ANNUALISPCOSTS FORRESIDENTIAL USER PACKAGES, 2000 (IN EURO EXCLUDINGVAT) 99 List of Figures in this report: FIGURE3.1 PSTNMONTHLY RENTAL FORBUSINESS CUSTOMERS2000... 24

FIGURE3.2 PSTNMONTHLY RENTAL FOR RESIDENTIAL CUSTOMERS2000 ... 24

FIGURE3.3 LOCAL CALL CHARGE COMPARISON1999 - 2000,PEAK TIME... 27

FIGURE3.4 LOCAL CALL CHARGE COMPARISON1999 - 2000,ECONOMY TIME... 27

FIGURE3.5 NATIONAL CALL CHARGE COMPARISON1999 - 2000,PEAK TIME... 34

FIGURE3.6 NATIONAL CALL CHARGE COMPARISON1999 - 2000,ECONOMY TIME... 34

FIGURE3.7 PEAK TIME CALL CHARGES TO MOBILE PHONES1999 - 2000... 37

FIGURE3.8 ECONOMY TIME CALL CHARGES TO MOBILE PHONES1999 - 2000... 37

FIGURE3.9 TIME BAND VARIATIONS FORLOCAL CALLS ON WEEKDAYS2000 ... 49

FIGURE3.10 TIME BAND VARIATIONS FORREGIONAL CALLS ON WEEKDAYS2000 ... 49

FIGURE3.11 TIME BAND VARIATIONS FORNATIONAL CALLS ON WEEKDAYS2000... 50

FIGURE3.12 TIME BAND VARIATIONS FOR CALLS TO MOBILES ON WEEKDAYS2000... 50

FIGURE3.13 TIME BAND VARIATIONS FORINTRA-EUCALLS ON WEEKDAYS2000... 50

FIGURE3.14 TIME BAND VARIATIONS FORLOCAL CALLS ONSATURDAYS2000... 51

FIGURE3.15 TIME BAND VARIATIONS FORREGIONAL CALLS ONSATURDAYS2000 ... 51

FIGURE3.16 TIME BAND VARIATIONS FORNATIONAL CALLS ONSATURDAYS2000 ... 51

FIGURE3.17 TIME BAND VARIATIONS FOR CALLS TO MOBILES ONSATURDAYS2000 ... 52

FIGURE3.18 TIME BAND VARIATIONS FORINTRA-EUCALLS ONSATURDAYS2000 ... 52

FIGURE3.19 TIME BAND VARIATIONS FORLOCAL CALLS ONSUNDAYS2000... 53

FIGURE3.20 TIME BAND VARIATIONS FORREGIONAL CALLS ONSUNDAYS2000 ... 53

FIGURE3.21 TIME BAND VARIATIONS FORNATIONAL CALLS ONSUNDAYS2000 ... 53

FIGURE3.22 TIME BAND VARIATIONS FOR CALLS TO MOBILES ONSUNDAYS2000 ... 54

FIGURE3.23 TIME BAND VARIATIONS FORINTRA-EUCALLS ONSUNDAYS2000 ... 54

FIGURE4.1 ISDN BASICRATE RENTAL CHARGES1999 - 2000 ... 59

FIGURE4.2 ISDN PRIMARYRATE RENTAL CHARGES1999 - 2000 ... 59

FIGURE5.1 CONNECTION CHARGE RELATIONSHIPS AGAINSTEUAVERAGE2000 ... 65

FIGURE5.2 MONTHLY RENTAL CHARGE RELATIONSHIPS AGAINSTEUAVERAGE2000... 65

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Disclaimer: This report has been commissioned as an independent study to examine tariff developments in the European Community. The Commission does not accept any responsibility for the accuracy or completeness of the information contained herein.

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1. Report summary

1.1. Background

This report is produced for the DG Information Society of the European Commission by Teligen Ltd.. It forms part of a larger study looking at price developments for telecommunications services within the European Union from 1998 to 2000, and is to some degree based on previous reports produced up until 1997. As this report will only present the price situation and development in each country, an accompanying report will analyse the prices, using basket methodologies, in order to compare real price relationships between the countries.

This report shows the actual prices and/or known forthcoming changes as of 1 January 2000. Wherever possible these prices are compared with 1999 data in order to report on individual price changes.

Teligen has collected tariff data from primary sources, i.e. directly from the telecoms operators and Internet Service Providers. As a specialist in tariff information, Teligen maintains direct contacts with all the operators covered on a regular basis, using a unique network of personal contacts within the operators' organisations (the so called liaison officers). Teligen uses the same information for the range of “T-products”, providing tariff and service information to regulators, operators and users around the world.

Throughout the report prices are converted into euro, and exclude VAT. Due to the fact that four of the currencies are floating in relation to the euro, some of the results may show a significant change even when there has not been any price change. This is especially the case for Sweden and the UK, where the exchange rate has gone up by 5.6% and 13.7%, respectively.

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1.2. PSTN

After the liberalisation of the telecommunications market in 1998, the prices have changed significantly in many countries. The changes mentioned below have occurred from the last tariff report which covered data as of January 1999, and up to January 2000.

In Ireland, Italy and Portugal the incumbent operators have changed their charging system to per second charging, adjusting their prices in the process. Therefore, as of January 2000, the following 11 countries use per second charging: Belgium, Denmark, Spain, France, Ireland, Italy, the Netherlands, Portugal, Finland, Sweden, United Kingdom. The remaining 4 countries still use unit based charging (Germany, Greece, Luxembourg and Austria).

All countries using per second charging apply some sort of safeguard against calls of short duration, such as a minimum or call setup charge. The following four different ways of doing this have been identified:

1. Call setup charge raised at the beginning of the call, and per second charging thereafter. This applies in Denmark, Italy, Netherlands, Finland and Sweden.

2. A fixed initial charge covering a fixed number of seconds of call time, and per second charging thereafter. This applies in Spain, France and Portugal.

3. An initial charge related to the actual per minute charge covering a fixed number of minutes of call time, and per second charging thereafter. This applies to Belgium.

4. A minimum charge per call, applied when the total call charge is less than the minimum. This applies to Ireland and United Kingdom.

This report covers standard charges, i.e. un-discounted prices. In the Netherlands and Austria the most appropriate tariff package have been selected, in the absence of standard prices.

Fixed charges have had the following changes from 1999 to 2000 (based on national currency):

Connection charges

• remained the same in ten Member States

• decreased in Spain (-12.4%), Greece (-66.7%), Austria (-6.3%) and the United Kingdom (-14.9% for residential)

• increased in Ireland (+4.6%).

Monthly rental charges

• remained the same in six Member States

• decreased in Ireland with (-15.4%) for Residential, but increased (+2.4%) for Business.

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• increased in Greece (+12.2%), France (+11.9% Business, +14.4%

Residential), Italy (+3.9% Business, +10.4% Residential), the Netherlands (+2.5% Business only), Austria (+4.3% Business, +33.3% Residential), Portugal (+11.4%) and United Kingdom (+2.3% Business, +3.7%

Residential).

Peak time (3 minute) standard usage charges for local, long distance and intra-EU calls have had the following changes from 1999 to 2000 (based on national currency):

Local call charges

• remained the same in seven member states.

• decreased in Italy and Austria by about 25%, while there have been minor decreases in Spain and the Netherlands.

• increased significantly in Greece and Portugal, while there have been minor increases in Ireland and Finland.

• Greece still maintains the lowest charges for local calls, followed by Spain.

The highest charges are found in Austria, followed by the United Kingdom.

Regional call charges are used in eight countries (Germany, Greece, Spain, France, Italy, Austria, Portugal and United Kingdom).

• increased in Spain for regional calls

• decreased slightly in most of the other countries Long distance (National) call charges

• remained the same in Belgium, Denmark, Germany, Luxembourg, Finland, Sweden and United Kingdom (BT reduced weekend charges in the UK).

• decreased in eight Member States. The largest reductions are in Portugal (- 42%), Austria (-33%), Spain (-33%) and Greece (-32%).

Calls from fixed to mobile phones

• remained the same in Belgium, Denmark, Germany and Ireland.

• decreased in nine of the Member States. Most significant changes are in Italy (-21%), the Netherlands (-16%), Austria (-13%), Sweden (-14%) and United Kingdom (-32%).

• increased slightly in Finland and Portugal

International call charges within the EU

• reduced in all Member States, except United Kingdom (discount packages are not included) Biggest reductions were in Luxembourg (-29%), Germany (-27%), Austria (-25%) and Italy (-24%).

The main change to the time band definitions came in Austria, where a great simplification was made in 1999. Germany and Luxembourg now have the most complicated systems with the call charges changing 4 times during a weekday. Most other countries only change their prices 2 – 3 times a day. No country has more than 3

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In this report the Economy calls are assumed to be the cheapest rate possible. The weekday night-time (03:00) rate is the lowest rate in Germany and Finland. The Sunday rate is the lowest in Ireland and United Kingdom. The weekday night-time and Sunday rates are the same (and lowest) in the other 11 countries.

1.3. ISDN

Standard ISDN fixed and usage charges of the incumbent operators have been analysed in this study. There are significant variations in the fixed charges with relation to what is seen for PSTN. This means that the ranking of the countries with relation to ISDN rental charges is very different to that seen for PSTN rental, even for Basic rate ISDN.

Rental charges

• decreased in Greece and Ireland,

• increased in Germany, France, Austria, Portugal.

• In the United Kingdom residential basic rate has been decreased, while primary rate has been increased.

• Basic rate is least expensive in Greece, while the most expensive is the United Kingdom.

National call charges for voice and data calls are identical to those for PSTN, for all countries. Please see the comments in section 1.2 above.

For Intra-EU calls, only the United Kingdom (BT) has different (higher) charges for transparent 64 kbit/s calls (data calls) than for voice calls. The other 14 countries have the same call charges for both voice and data calls.

1.4. Leased lines

As with the previous reports, this report is only looking at circuits 2 Mbit/s and higher.

The availability of tariffs for 34 Mbit/s and 155 Mbit/s circuits is increasing, but several operators still offer these circuits on a case by case basis only, and some do not give any information on the availability of these speeds.

The leased lines are covered with 3 national distances (2 km, 50 km and 200 km), and 3 international destinations (near EU country, distant EU country, and USA).

The 2 km circuit will in all cases be a local circuit, and will normally be priced with one single charge, possibly with a distance element.

National circuits include a 2 km local circuit (except for Belgium, where the local circuit is 5 km due to the different structure of the tariffs) at each end. The price of, for example, a 50 km circuit is built from one local circuit of 2 km + trunk circuit of 46 km + one local circuit of 2 km.

In Denmark, Germany, Greece, Ireland, Italy, Austria, Portugal and the United Kingdom (BT), the connection charges for 2 Mbit/s circuits were reduced. Belgacom in Belgium increased their connection charge.

The rental charges for 2 Mbit/s circuits were not changed in Spain, Ireland,

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1.5. Mobile

The GSM service is covered for two operators in each country, the incumbent-owned operator, and the most prominent mobile competitor. There has been a significant change in both the tariff package offerings and the overall price levels. Many operators have completely redefined their tariff packages, something which makes a direct year-to-year comparison difficult.

Prepaid packages are covered for all EU Member States.

1.6. Internet

In this survey, price and service information have been collected from 81 ISPs across the 15 EU Member States, with a total of 191 dial up packages. From these packages, 105 are relevant for business users, and 126 are relevant for residential users (some packages are relevant for both). Prices have been analysed, and an overview is provided in this report.

A strict comparison is not feasible between these prices, as the packages have very different content, with regard to email addresses, web-space, and other service offerings. The survey also shows that the prices vary immensely, and there are few nation-specific trends.

Call charges for PSTN dial up access have been analysed, and in all but 5 countries (Greece, Ireland, Luxembourg, Austria and Portugal) the standard local PSTN charges apply. These 5 countries offer special discounted rates for Internet access through the PSTN network.

The assumption is that ISP services shall be reached with a local call. In some countries there are special access codes for Internet access, using free-phone or premium rate numbers to ensure local (or discounted) call charges from all locations of the country (for example in Denmark).

The so called “free” Internet access is now available in most countries, where regular local call charges paid to the telecom operator are also used to cover also the ISP charges. Hence the ISP appears to be free to the user, but call charges still have to be paid.

Another variant is where the ISP provides a free-phone number for access. In these cases the ISP will normally have a usage based charge (e.g. per minute) to cover the cost of the access.

Flat rate services are also becoming a reality in some countries. For instance BTs

“Internet Plan Unlimited” in the United Kingdom, offers free access and free calls at off-peak hours. Peak hour access still has to be paid.

A number of operators allow “Friends and Family” type of discounts to be used also for Internet access. This can provide additional discounts on the PSTN call charges for Internet access, but has not been included in this report as such discounts are individual to each customer.

Special offerings or deals for schools and libraries have been identified in all countries except Denmark, Netherlands and Sweden. These offerings are initiated either by the ISPs themselves, or through regulatory pressure.

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2. Overview of changes in EU countries

for the period 1 January 1999 to 1 January 2000

2.1. Changes in telephone charges B On 1 July 1999,

• international direct dialled calls made at off-peak times to Austria, Switzerland, Spain, Portugal, Italy, Greece, Sweden, Norway, Finland, Ireland and San Marino was reduced.

• bordering area calls were reduced to bordering areas of France, Germany, Luxembourg and the Netherlands, for customers in area codes which are on the border with these countries.

DK On 1 January 1999,

• line rental charge for Mini (low user) subscribers in all regions except Jutland was reduced by between 10 and 12.5%,

• domestic call charges for these subscribers were all reduced by 50%.

• international calls to all EU destinations (with the exception of Luxembourg) decreased by between 4 and 20%.

• international calls to Sweden, Germany, Netherlands and United Kingdom were further reduced with effect from 1 January 2000.

D On 1 January 1999,

• the timebands were changed so that the number of timebands for regional (RegioCall) and long distance (GermanCall) calls was reduced from five to three.

• daytime long distance call charges were reduced by between 30% and 35%, while the cost of evening and weekend calls to regional destinations was reduced by 25%.

• long distance calls made in the evening and weekend timeband were reduced by between 40% and 62.5%.

On 1 April 1999,

• the “Night” timeband was extended from 0200 to 0500 every day to 2100 to 0600 every day.

On 1 June 1999,

• international calls to all EU destinations except Finland, Portugal and Sweden were reduced by between 12.5% and 43% as Deutsche Telekom introduced a flat rate of DM 0.48 per minute at all times (including VAT) to 22 European destinations.

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EL On 1 March 1999,

• line installation charge was reduced by 50%

• monthly line rental was raised by 12.5%.

• the unit charge was reduced from Gdr 13.00 to Gdr 6.00, but the number of seconds allowed per unit for local calls was also reduced, which had the overall effect of increasing peak rate local call charges by 38%, and off-peak rates by 84%.

• regional and national call charges dropped by between 11% and 60%, depending on the distance band. The equivalent off-peak charges also decreased, by between 21% and 75%, depending on the distance band.

• international call charges to EU countries remained unchanged.

On 1 November 1999, OTE

• line installation charge was reduced by 33%,

• tariff unit charge increased by GDr 1.00, to GDr 7.00.

• regional call prices (up to 45 km) fell by 41% in both timebands,

• long distance call charges (over 80km) were reduced by around 23% in both timebands.

E On 1 July 1999,

• line installation fee reduced by 12%,

• non-local daytime call charges reduced by 3%.

• standard rate timeband for national and international calls was also shortened by 2 hours on weeknights.

• international call charges to all EU destinations and the USA were reduced by between 7% and 34%.

On 1 November 1999,

• number of timebands for domestic calls was reduced from three to two,

• local calls became 13% cheaper in all timebands (after the call set up charge and credit time).

• peak rate regional and national calls was also reduced, by 4.36% and 17.56%

respectively.

On 1 December 1999,

• international calls to all EU destinations were reduced by between 7.4% and 10%,

• peak rate timeband for international calls was extended by 3 hours, from 1700 to 2000.

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F On 1 March 1999,

• monthly line rental charge increased for business and residential customers.

Standard business line rental rose by FFr 8.00, while standard residential line rental increased by Fr 10.00, and low user line rental went up by FFr 5.00.

• national long distance call charges were reduced by 12% during the peak rate timeband and by 11% during off-peak times, while the off-peak timeband was expanded to include the whole of Saturday, as well as Sundays and weekday evenings.

• international calls were reduced, for all destinations. The price of a call to EU countries decreased by between 10% and 12%.

During September 1999,

• introduced separate national and international call charges for business and residential customers. Domestic call charges for residential customers remained unchanged, while the cost of calls to EU destinations was cut by an average of 8.5%. For business customers, the cost of domestic calls was cut by an average of 11%, and call charges to EU countries dropped by an average of 19%.

IRL On 1 July 1999,

• replaced unit based charging with a per second system, and introduced lower tariffs for all calls. On average, local call charges decreased by 7%, national calls by 9% and international calls by 3%.

On 21 December 1999,

• local calls increased by 4% during the Standard timeband and by 32% at Reduced times,

• long distance weekend calls was reduced by 8.4%.

• a special dial-up Internet access via the 1891 prefix was introduced. This is 38% lower than peak local rates and 24% cheaper than off-peak local calls.

I On 6 January 1999,

• peak time long distance calls were reduced by 15%

• calls to the United Kingdom was reduced by 8% (peak) and 11% (off-peak).

For calls to France, Germany, and the Netherlands, rates were reduced by 30% (peak) and 19% (off-peak).

On 1 March 1999,

• monthly charge for business and residential lines increased. Residential rental increased from rental L16,300 to L16,800, while the charge for business customers rose from L25,400 to L26,400.

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On 1 August 1999,

• international calls to all EU destinations was reduced by 6% at peak times and by 14% during off-peak times.

On 1 November 1999,

• unit based charging was replaced with per second based charging, and lower tariffs for local, national and international calls was introduced. A call setup charge was also introduced, priced at L 127 for domestic and border zone calls, and L 500 for IDD calls.

L On 1 July 1999,

• international calls to all EU destinations was reduced by an average of 19%, while calls to several other destinations increased by up to 34%, due to restructuring of tariff zones.

NL On 1 January 1999,

• line installation charge was reduced by 56.5%,

• monthly subscription for the BelPlus package fell by 2.5%

• new Sunday timeband was introduced, giving savings of between 10% and 33% on national calls made at any time on a Sunday.

• long distance call charges were cut on weekdays and Saturdays for all BelBasis and BelPlus subscribers.

• international calls to all countries were also reduced, with the price of calls to EU countries falling by an average of 10%.

On April 6 1999,

• Sunday timeband for local calls was extended to include weekday evenings (0000-0800) and Saturdays

On May 15 1999,

• international calls to Belgium, Denmark, Germany, France, Italy, Luxembourg, Norway, Spain, Sweden and UK got a lower, flat rate.

On 15 December 1999,

• peak rate local call charges were reduced for all subscribers by 6%, while long distance call charges for all subscribers fell by between 4 and 12%, with the exception of off-peak calls for low users, which remained unchanged.

• international call charges to Aruba, Australia, New Zealand, Turkey and USA were also reduced.

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AUT On 1 September 1999,

• monthly line rental prices increased for all customers with the exception of high volume business users (Business 2 package). Low user rental increased by 26%, standard rental by 33% and Business 1 rental (medium volume business users) by 4%.

• average cost of national and international calls decreased by 20% for all users,

• number of timebands for national calls was reduced from four to two, and the number of distance bands was reduced from three to two (local and national).

P On 27 February 1999,

• international call charges to all destinations were reduced, and the number of timebands was reduced from three to two. The price of a call to EU destinations fell by between 7% and 11%, depending on the timeband.

• monthly line rental increased by 4.4% for all customers,

• regional and long distance rates were reduced, by an average of 16%.

On 1 July 1999,

• long distance calls were further reduced, by 5.8% at peak times, and by 9.7% during off-peak times

On 1 January 2000, Portugal Telecom

• moved from unit based charging to per second based charging,

• monthly line rental increased by 6.25%.

• local calls increased by between 30 and 37%

• regional call charges increased by between 2.5 and 8.4%

• long distance call charges were reduced by 38% at peak times and by 16%

during off-peak times,

• international call charges to the USA decreased by between 10 and 13%, depending on the timeband.

FIN On 1 February 1999,

• international call charges changed. Standard rate call charges to Denmark and Norway were reduced by 70%, and by 20% to Sweden. The cost of standard rate calls to Germany was reduced by 3%, and call charges to all other EU destinations during the same timeband fell by 17%.

On 1 May 1999,

• local network fee of FIM 0.293 per call and FIM 0.045 per minute thereafter was introduced. This is added to all long distance call charges.

•

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On 1 July 1999,

• local calls changed from FIM 0.488 per call and FIM 0.075 thereafter to FIM 0.60 per call and FIM 0.07 thereafter.

• local network fee was altered to FIM 0.36 per call and FIM 0.042 thereafter,

• Standard timeband for international calls was shortened by two hours, from 2200 to 2000.

SWE On 1 January 1999,

• national long distance calls was reduced by 24% at peak times and by 20% at off-peak times.

On 17 May 1999,

• international calls off-peak reduction was abolished, having previously been offered to customers who paid a surcharge of SEK 16 per month.

On 4 October 1999

• international calls to the USA was reduced by 35%

On 15 December 1999, Telia

• international calls to selected European destinations was reduced. The rates per minute for calls to Germany, Netherlands and the United Kingdom were reduced by 20%, while call charges to Italy decreased by 22%. The cost of calls to Belgium, France, Poland and Spain was also reduced, by between 3%

and 18%.

UK On 1 April 1999

• BT line takeover charge of GBP 9.99 (including VAT) for customers activating an existing line was abolished for residential customers, and on 1 July for business subscribers.

On 1 October 1999, BT

• business and residential line rental charges increased by 2% and 4%

respectively.

• long distance weekend calls were reduced by 30%

• all residential customers receive a call allowance of GBP 1.80 per quarter.

On 1 November 1999,

• a new residential calling plan (known as BT Together) was launched, whereby customers receive lower call charges and a call allowance of GBP 5.40 (incl. VAT, including the GBP 1.80) per quarter, in return for a 30%

higher rental charge.

Notes:

Tariff information is collected directly from the incumbent operators, and covers the “standard”

services. Discount schemes are not included.

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2.2. Changes in Leased Line charges B In March 1999,

• rental charges were reduced for digital leased circuits and the tariff structure for installation costs for national circuits simplified. Digital rentals were reduced by 5% for 64k circuits and up to 20% on 2M and higher. Interzonal circuits saw significant rate reductions of between 10% to 20%.

DK In June 1999,

• tariffs for high speed circuits of 34M and 140M were first published.

In September 1999, Tele Danmark

• reduced all national digital circuits by approx. 15%. Installation charges for 2M circuits were also reduced.

D In May 1999,

• Standard-Festverbindungen national digital leased circuit service changed.

• Installation charges were reduced for single 2, 34, 140 and 155Mb/s connections, while the discounted charges for customers installing more than one 2Mb/s circuit, also decreased. Installation charges for additional 34, 140 and 155Mb/s did not change.

• Monthly rental charges for all speeds were reduced, but long-term contract discounts and volume related discount plans remained unchanged.

EL In March 1999,

• installation charge for national digital circuits increased by 30 to 50%.

• monthly rentals for analogue and digital circuits were also changed. Analogue circuits were reduced by between 10 and 50%. Digital fixed rentals were cut by around 30% while the incremental rates were cut by up to 40% in some cases.

On 11 October 1999, OTE

• revised all national digital circuits again. These changes included reductions of 26% on 64K circuits and 5% on 2M.

E On 14 December 1999, Telefonica de Espana

• monthly rental charges were reduced for all international digital leased lines to all destinations. Tariffs for 64k up to 1.5M were reduced by 10 to 25%, while prices for 2M circuits were reduced by 12 to 30% depending on zone and destination. The high speed circuits (34M) saw the biggest decreases by between 60 to 70%.

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F On 1 January 2000,

• Transfix leased line prices reduced. For national circuits, tariffs decreased for circuits with capacities of 128 Kb/s and over. The monthly rental for national 128Kb/s circuits dropped by 15% plus decreases of at least 33% for national circuits up to 2Mb/s. For national connections above this speed, both installation and rental prices fell, by between 30 and 38%.

• international circuit installation charges remain unchanged

• monthly rentals for all access circuits (customer’s premises to POP) decreased, while international half circuit rentals of speeds between 64 and 384 Kb/s fell, to certain destinations. Tariffs for 155M national service and 34M international service are now published.

IRL During this period there were no changes to leased line prices by Eircom. The last changes occurred in October 1998.

I In January 1999,

• monthly rental charges for all national and international digital leased lines changed. The national fixed access fees were reduced from 20% to 50% and incremental charges were increased up to 50%.in some cases. 2M tariffs were restructured offering two options based on annual spend and term contract.

• international circuits to all destinations were reduced by between 8% and 15%

on average.

In March 1999

• local digital circuits were reduced by 25% and trunk circuits by an average of 50%. National 34M tariffs were published for the first time.

• international circuits were also revised. Circuits to European destinations were reduced by 5% and circuits to USA by 23%.

L On 1 April,

• monthly rental for international digital leased circuits supplied by P&T Luxembourg were reduced by between 15 and 30%, depending on the destination.

• installation and rental charges for all other leased line services remained unchanged,

• with the exception of monthly rental for national 2-wire M1040 circuits, which increased by 26%.

NL No changes were made to KPN’s Leased Line prices during this period. The last changes occurred in October 1998.

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AUT In July 1999,

• national and international leased circuit prices changed:

• monthly rentals for national digital circuits were reduced by an average of 5% for local circuits and 25% for national and higher speed circuits.

• international circuits were reduced by between 5 to 10%.

P On 1 April 1999,

• installation costs for national analogue and digital lines were reduced

• monthly rental charges for digital circuits were reduced.

• monthly rental charges for national analogue lines remain the same.

In June 1999,

• installation charges rose slightly for international digital leased lines

• monthly rental charges for these circuits dropped by up to 43%. All circuits experienced reductions of between 13 and 20%

FIN In January 1999,

• national leased lines were restructured resulting in 2M circuits to Green areas being reduced by an average of 20%. However, local circuits in Green areas were increased by 90%

• 2M International circuits to Sweden were cut by 35% at the same time.

On 1 January 2000,

• international digital leased lines changed. Circuits were reduced by an average of 15% overall. Tariffs for higher speed circuits of 8M, 34M and 45M were also published for the first time.

SWE No changes were made to Telia’s Leased Line prices during this period. The last changes occurred in September 1998.

UK In January 1999, BT

• installation and rental charges for international analogue circuits increased by an average of 2 to 15% depending on destination and circuit speed.

On 1 November 1999,

• international leased circuits of 2M and above were reduced by an average of 50%.

Notes:

Tariff information is collected directly from the incumbent operators, and covers the “standard”

services. Discounts are not included.

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2.3. Exchange rates and VAT percentages

The following table lists the exchange rates and the VAT rates used in this report.

Table 2.1 Exchange rates and VAT percentages (1999 - 2000) Exchange rate to euro VAT

January 1999 January 2000 January 1999 January 2000

B 40.3399 40.339900 21% 21%

DK * 7.44117 7.443900 25% 25%

D 1.95583 1.955830 16% 16%

EL * 323.560 331.069000 18% 18%

E 166.386 166.386000 16% 16%

F 6.55957 6.559570 20.6% 20.6%

IRL 0.787564 0.787564 21% 21%

I 1936.27 1936.270000 20% 20%

L 40.3399 40.339900 15% 15%

NL 2.20371 2.203710 17.5% 17.5%

AUT 13.7603 13.760300 20% 20%

P 200.482 200.482000 17% 17%

FIN 5.94573 5.945730 22% 22%

SWE * 9.08261 8.596790 25% 25%

UK * 0.702913 0.618338 17.5% 17.5%

Prices in this report for both 1999 and 2000 are given in euro and exclude VAT.

*) 1999 and 2000 exchange rates for the countries outside the euro-zone are average rates for January 1999 and 2000, as reported by EuroStat.

Please note that due to significant changes in exchange rates for Sweden (5.6%) and the United Kingdom (13.7%) between 1999 and 2000, the prices as reported in euro may appear to have increased for these two countries, where in fact they may have decreased or not changed at all.

The changes in Denmark and Greece are minimal, and will not affect the numbers presented in the comparisons.

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3. PSTN prices

The prices given are expressed in euro, using average January 2000 exchange rate.

Any individual comparisons with 1999 prices are done in national currency, to avoid the impact of any exchange rate variations. Comparisons of averages are done in euro.

3.1. PSTN connection

Connection charges for new PSTN lines are listed below. Prices are in euro and exclude VAT.

Table 3.1 PSTN connection charges 2000 (in euro excluding VAT) Connection charge Nominal

change Business

Nominal change Residential

Notes

Business Residential Low user 1999 - 2000 1999 - 2000

B 54.54 54.54 16.36 0.0 % 0.0 % 1

DK 102.10 102.10 0.0 % 0.0 %

D 44.46 44.46 0.0 % 0.0 %

EL 30.21 30.21 -66.7 % -66.7 %

E 127.72 127.72 38.31 -12.4 % -12.4 % 2

F 38.56 38.56 0.0 % 0.0 %

IRL 103.88 103.88 4.6 % 4.6 %

I 103.29 103.29 0.0 % 0.0 %

L 61.97 61.97 0.0 % 0.0 %

NL 38.62 38.62 0.0 % 0.0 %

AUT 109.01 109.01 -6.3 % -6.3 % 3

P 71.83 71.83 0.0 % 0.0 %

FIN 134.55 134.55 0.0 % 0.0 % 4

SWE 90.73 90.73 0.0 % 0.0 %

UK 160.11 136.25 0.0 % -14.9 %

EU Average 84.77 83.18 5

Notes:

1. Low income and elderly customers pay euro 16.36 instead of the normal 54.54.

2. Disabled and elderly customers pay euro 38.31 instead of the normal 127.72.

3. This charge is a minimum charge. Actual cost is assessed on a time and materials (equipment) basis.

4. Only business customers pay VAT on this charge. Connection charge is tax free for residential customers

5. The EU Average is a simple un-weighted average

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3.2. PSTN monthly rental

Rental charges for standard PSTN lines are listed below. Prices are in euro and exclude VAT.

Table 3.2 PSTN monthly rental charges 2000 (in euro excluding VAT)

Monthly rental Nominal

change Business

Nominal change Residential

Notes

Business Residential Low User 1999 - 2000 1999 - 2000

B 13.39 13.39 6.69 0.0 % 0.0 % 1

DK 12.93 12.93 9.67 0.0 % 0.0 % 2

D 10.93 10.93 4.00 0.0 % 0.0 % 3

EL 6.95 6.95 12.2 % 12.2 %

E 8.67 8.67 0.43 0.0 % 0.0 % 4

F 11.43 9.83 4.93 11.9 % 14.4 % 5

IRL 13.00 13.00 2.4 % -15.4 %

I 13.63 9.30 4.29 3.9 % 10.4 %

L 11.90 11.90 0.0 % 0.0 %

NL 15.68 13.36 7.71 2.5 % 0.0 % 6

AUT 17.44 14.53 11.99 4.3 % 33.3 % 7

P 11.17 11.17 9.81 11.4 % 11.4 % 8

FIN 9.65 9.65 0.0 % 0.0 % 9

SWE 13.49 9.77 0.0 % 0.0 %

UK 20.59 12.73 4.45 2.3 % 3.7 % 10

EU Average 12.72 11.21 6.40 11

Notes:

1. Charges vary according to the zone in which a subscriber is located. The charge shown relates to customers in zones with over 100,000 subscribers. Low user tariff applies only to low income and elderly customers.

2. Charges vary according to the area in which the subscriber is located. The charge shown relates to the Copenhagen area.

3. Low user tariff applies only to customers on social welfare schemes.

4. Low user tariff applies only to disabled and elderly customers.

5. Business package shown is Contrat Professionel. A package with higher rental is available to high volume business users (Professionel Présence), which gives a 10% reduction on all peak rate calls.

For low user subscribers, calls are charged at double the normal rates, up to a bi-monthly threshold of FR 272.94. Once this level of spending has been reached during any two month period, all subsequent calls are charged at normal rates. Tariffs change on 1.3.99.

6. Low user (BelBudget) customers who make international calls pay 5.5 times the normal charges.

BelBasis is assumed as the residential plan, and BelPlus as the business plan.

7. Standard package is assumed as the residential plan, Business 1 package as the business plan. A Business 2 package does also exist, with lower call charges.

8. The low user charge shown represents the maximum discount available. This applies to subscribers using between 1 and 167 units per month (6.3% discount).

9. Charges vary according to the area in which the subscriber is located. The charge shown relates to the Helsinki area.

10. The low user charge shown represents the maximum discount available under the Light User scheme. The maximum discount only applies to subscribers with zero usage. Regular residential users receive a call allowance of GBP 1.80 (incl. VAT).

11. The EU Average is a simple un-weighted average

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Figure 3.1 PSTN monthly rental for Business customers 2000

Monthly rental for Business customers

0.00 5.00 10.00 15.00 20.00 25.00

B

D

E

IRL

L

AUT

FIN

UK

EURO

Figure 3.2 PSTN monthly rental for residential customers 2000

Monthly rental for Residential customers

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00

B DK D EL E F IRL I L NL AUT P FIN SWE UK

EURO

Telecoms Tariff Data

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