Prices for DSL have fallen by 39% since the beginning of the year and, according to Oftel, user numbers have increased by 50%. The UK now has over 600,000 broadband connections and Oftel estimates that there are over 20,000 new connections every week.
Oftel adds that the UK has a more competitive market for DSL than either France or Germany, with cheaper wholesale prices than France and more competition from service providers. In addition, there is more competition from cable operators in the UK than in France or Germany. Oftel estimates that 50% of connections are provided by service providers other than BT.
David Edmonds, Director General of Telecommunications, said:
"The UK is as cheap or cheaper for consumer broadband than all countries surveyed except Sweden. Taking DSL on its own, the UK is now cheaper than either France or Germany, as prices to consumers have fallen in line with reductions to the wholesale price."
On dial-up Internet access, unmetered services in the UK are cheaper than all other countries in the study by at least 9%.
Oftel’s international benchmarking study of internet access (dial-up and broadband)