OECD_Fixed_VoiceOECD Fixed Voice

OECD Fixed Voice

OECD Fixed Voice and Leased Lines Price Benchmarking Q3 2020

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Report Summary:

OECD Fixed Voice and Leased Line Price Benchmarking Q3 2020 update: Telmex in Mexico has the cheapest offering for low residential users of fixed voice, while KPN in the Netherlands is the most expensive.

The Q3 2020 OECD Fixed Voice and Leased Line Benchmarking Service update is now available for download. For a low residential user (making 20 fixed voice calls per month, which equates to 62 minutes per month), the Prepaid Multifon 50 tariff from Telmex in Mexico is the cheapest offering across the OECD countries, at USD PPP 6.54. KT, Korea is second cheapest, at USD PPP 8.05 with its Home Infinity 3000 service. KPN in the Netherlands is the most expensive, with its Big Hussel Thuis service, with BelOnberperkt NL unlimited calls option, at USD PPP 64.55. As is increasingly the case with some providers, standalone services are no longer offered to new subscribers, but rather, fixed voice is only available as part of a broadband bundle. In this case, the Bij Hussel Thuis plan from KPN includes a 50 Mbps internet service.

Both Germany and Ireland have made temporary reductions to VAT this quarter, as a result of the Covid-19 pandemic. In Germany, the VAT rate has been reduced from 19% to 16% from 1 July 2020 until the end of December 2020, while in Ireland the 23% VAT rate is being reduced from 1st September 2020 until the end of February 2021.

For most countries, the bulk of the cost continues to come from the upfront rental charge, and this can be seen on the graph below, with the blue bar representing fixed costs. Where variable call costs are levied, these can amount to a varying degree of the overall cost, depending on the countries.

The chart below shows the cheapest tariff in each country, based on the OECD 2017 20 calls residential basket for this update.

Source: OECD Fixed Voice Price Benchmarking, Strategy Analytics

The Q3 2020 update for Fixed Voice services incorporates the new OECD 2017 baskets. It is now possible to view the results in a wider range of currencies.

Historical pricing for the OECD countries over several years is also available. Strategy Analytics also produces benchmarking services for mobile voice, and fixed and mobile broadband, as well as bundled telecoms services and Pay TV.

If you have any difficulty using any of the functions within OECD Fixed Voice and Leased Line Price Benchmarking, or would like more information on how to get the most out of the system, please contact either:

Nacera Touileb, Analyst, Teligen: Tel: +44 1908 423 679 Email: ntouileb@strategyanalytics.com

Bernadette Finn, Associate Director, Teligen. Tel: +44 1908 423 672. Email: bfinn@strategyanalytics.com

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