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Competition: UK Sees Broadband, TV, and Phone Costs Decline 9% While Prices Way Up in USA

Phillip Dampier March 20, 2017 Competition, Consumer News No Comments

The average household in the United Kingdom pays 9% less for broadband, phone, and television service than a decade ago, even though data usage has exploded and the country is embarked on a massive broadband upgrade effort. Contrast that with reports the average household in the United States is facing rate increases averaging 8-10% annually, even though the costs to deliver service have been declining for years.

According to a Ofcom report reviewing price trends, the average British resident today pays an average of $164.35 a month for broadband, television, landline and mobile phone services. Many U.S. households spend close to that amount before including their mobile phone bill.

In Great Britain, where competing companies have open access to the country’s telephone network, the average price of an entry-level broadband and landline package dropped at least 25% to $42 a month. A similar package from Charter Communications costs $64.98 a month for the first year, before prices rise to over $80 a month in year two. In the United Kingdom, a triple play package of phone, TV, and internet access now averages $53.14 a month. In the United States, it averages well over $100 a month.

The British, like their North American counterparts, are voracious consumers of internet data, consuming 132GB per household in 2016, up from 8GB in 2008. But despite increased usage, the cost of internet service in Britain has dropped, even with heavy investment in fiber optic network upgrades.

In Great Britain, multiple providers compete by offering services over existing telecom networks. In the last three years, customers have been able to choose from 551 different dual and triple play offers from several different companies, up from 294 just three years ago. Most now choose discounted bundles of multiple services under a single provider. But customers can still choose a plan that most closely fits their needs. In the United States, some providers like Charter Communications are eliminating most ions for customers, preferring to sell a more-costly, one-size fits all broadband and phone option.







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  • John: It might be a problem with a person with disablities tries to pay and they charge them....
  • John: Well, time for everyone to start paying them by snail mail, then....
  • Mike D.: And for those who are planning to "cut the cord" after a promotion expires, be aware that Charter is lobbying the new administration and FCC chairman ...
  • Dylan: Huh, that's interesting regarding that Spectrum only saves 3/10 of its customers. Maybe there is something going on. And regarding my own promotion -...
  • Phillip Dampier: You were not on a promotion before which is why you got one this time. One year from now when your bill spikes and you call and complain, they will te...
  • Dylan: It's not that hard to get new customer pricing from Spectrum. I used to be a TWC customer paying $65/mo for 50 Mbps down internet. Once Spectrum came...
  • NM: Phillip, You may be interested in today's online story in Syracuse.com about what Spectrum's customers in CNY think about the merged company: http://...
  • Jim J: Dial tone is dial tone....
  • Julia: Even in life after TWC, if customer complaints remain the same or if a customer service rep claimed to have fixed a problem, but really didn't, you ca...
  • DPNY: As soon as Spectrum took over, my bill went up (a couple of dollars, but still)! I pay almost $250 a month as it is now for the package! I can think...
  • Yuji Saeki: Affordable Broadband unfortunately means "is it affordable for the Cable Companies?"...
  • ScottIn SoCal: PO WNC, I wish you luck! I've been in the same city residence for over 23 years and have not gotten fiberoptic lines here (Verizon FIOS) and based ...

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