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Telephony Costs in Sweden Still Falling - But More Slowly

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Since the start of the century, Sweden's consumers have experienced steadily falling prices for telephony and broadband. Prices are still dropping, but at a lower pace than at the beginning of the decade, according to the Swedish Post and Telecom Agency's (PTS) price report.

Between 30 June 2008 and 30 June 2009, the monthly cost of the most inexpensive offering for mobile telephony dropped by 5 per cent for an average user, and by 2 per cent for a major user.

For some consumers, however, prices are still falling sharply. Within mobile telephony, the monthly cost for a user who sends a large number of text messages has dropped by a full 29 per cent. Within fixed telephony, the monthly cost has dropped by 19 per cent for users who make a large number of calls to mobile telephones. What's more, the monthly cost for an average user of mobile broadband has dropped by 16 per cent.

PTS's price report also shows that the lowest prices offered for fixed broadband are substantially below the average price nationally in areas with a high level of fibre network coverage and where several suppliers compete for end users. On the other hand, the lowest price offered is higher than the average price nationally in areas where only one service provider offers fixed broadband subscriptions.

Difficult price calculations and comparisons

PTS has also observed that it is still difficult for consumers to calculate and compare prices of different offers. For this reason, PTS will continue to develop the price comparison tool called 'Telepriskollen'. This tool now also enables consumers to compare bundled subscriptions and charges that are difficult for consumers to take into account (known as 'hidden charges'). PTS has also drawn up general advice on how telecom operators ought to provide clear price information for mobile telephony.

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Tags: post and telecom agency  broadband  coverage  pace  Sweden