Information Society indicators in the Member States of the EU
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4. Comparison of voice communications prices in European Union

4.1 Local communications prices (EUR/min)

At the end of 1999, the average price per minute of a local call for households in the EU was 0.0399 EUR compared with 0.402 EUR for businesses (Note : all prices quoted include tax). Average tariffs in the Member States of the EU are reasonably similar. However, one can observe large differences between countries as regards specific rates for certain user types. For example, the highest household tariff (Ireland) is more than twice as high as the lowest tariff for households (Greece). The gap is more important for businesses where the highest tariff (Portugal) is nearly 3 times higher than the lowest tariff (Belgium). Differences reflect the extent of competition in the market.

It is important to note that at the end of 1999, the local market remained under the monopoly of the historic operator in nearly all European countries.

One can distinguish between three categories of countries :

• Countries with a per minute tariff lower than 0.032 EUR, both for households and businesses. Nordic countries such as Sweden, Denmark and Finland that saw early market liberalisation are included in this category. One can also find Greece, Belgium and the Netherlands due to special regulation of local tariffs.
• Countries with a per minute tariff between 0.038 and 0.044 EUR. Some of the largest EU telecommunication markets such as those of Germany, France, the United Kingdom and Spain fall within this category.
• Countries with per minute tariffs higher than 0.044 EUR : Austria, Italy, Portugal, Ireland are included into this category.

Graph 23: Per minute price of a local voice communication End 1999

Average price of a minute of local voice communication 
(Source : Tarifica / ART)

4.2 National long distance communications prices (EUR/min)

At the end of 1999, the average EU tariff for a minute of long distance communication was 0.091 EUR for households and 0.086 EUR for businesses. Differences between tariffs are accentuated the most in the national long distance markets, reflecting important differences in the development levels of competition.

Competition exists in long distance voice communication in all EU countries since 1998, except in Portugal and Greece which benefited from a delay to introduce competition. Indeed, due to their low market development level, the date for liberalisation was postponed until 31 December 1999 for Portugal and 31 December 2000 for Greece.

Generally speaking, the development of competition has resulted in a continuous downward trend in long distance telecommunications tariffs especially for businesses which constitute a key target for new telecommunication actors. An significant decrease in tariffs has also been observed in the residential market.

One can note that the lowest household tariff (Luxembourg : 0.029 EUR/min) is seven times lower than the highest one (Greece : 0.204 EUR/min). The size of this range reflects differences in the extent to which competition has penetrated the marketplace.

One can observe three groups of countries :

• Countries with a per minute tariff lower than 0.047 EUR, both for households and businesses. This category includes the Nordic countries Sweden, Denmark and Finland where competition in the long distance market was introduced early on.
• Countries with a per minute tariff between 0.069 and 0.093 EUR. One can find Austria, United Kingdom, Germany (where the development of new entrants has been very rapid) and France (France only for the business market).
• Countries with per minute tariffs included between 0.101 and 0.204 Euro. This category includes the countries where competition has taken more time to develop : Spain, Ireland, Portugal, Belgium, Greece, France (France only for households market).

Graph 24: Per minute price of a national long distance voice communication - Euros - End 1999

Average price of a minute of national long distance voice communication 
(Source: Tarifica / ART)

The graph below shows the average EU tariff per minute for local and long distance voice communications for both households and businesses.

The average EU tariff for a local call is less than half the long distance tariff for households and businesses. One can also note that the average tariff for a local call is the same for both households and businesses, while in the case of long distance communications, the average tariff for businesses is slightly inferior to the average tariff for households.

Graph 25: Average EU price of a minute of voice communication Euro - End 1999

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All data have been collected from readily available public sources of information (annual reports and publications by regulatory bodies, professional associations, operators, etc.). This is not a scientific document, but rather seeks to identify the key trends. To this end, where necessary, estimations have been made.

Additional data and information sources are available in the country reports that can be found on the ESIS Knowledge Base (http://www.ispo.cec.be/esis).

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