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4.7 Benchmarking Rates for Network Access

This section provides international benchmarks of voice telephony call rates and broadband data rates: [1]

  • Table 1 summarizes approximate interconnection fees and rate elements charged by carriers in several developed and developing nations for local exchange access,
  • Table 2 provides rates for broadband services for selected countries.

The data benchmarked here should be interpreted with care. The terms and conditions of telecommunications carrier-to-carrier interconnection vary on the basis of such factors as traffic density, routing distance, number of switches transited, equipment efficiency and time of day. Regulatory policies also have a major effect, particularly if rates include non-cost factors such as universal service contributions.

Some network access rates may be comparatively high, because they must compensate carriers for fixed costs that do not vary with usage. Some nations require telephone subscribers to pay a monthly fixed fee for the privilege of having network access regardless of usage. If subscribers do not pay such a fee per minute service charges may have to include a surcharge.

Table 1: Benchmarking Voice Telephony Call Rates

 Nation or State

 Local Level

 Single Transit

 Double Transit

 Fixed-to-Fixed EU average 2003  0.80 Euro-cents per MOU [2]  0.75 Euro-cents per MOU  0.63 Euro-cents per MOU
 New York 2005  Port rate $2.57 flat rate

 0.001147 cents per MOU originating; 0.00111 cents per MOU terminating

 Tandem Switching 0.000481 cents and 0.000203 common transport
 Hungary 2004  1.85 Euro-cents per MOU  2.4 Euro-cents per MOU  2.76 Euro-cents per MOU
 Czech Republic 2004  1.3  1.62  2.06
  Japan 2004    1.727 local switching yen per MOU  2.057 yen per MOU
 India 2005  0.20 - 1.10 Rupee based on mileage bands    
 Malaysia 2005  2.6 Sen per MOU  4.8 Sen per MOU  8.43 Sen per MOU

Table 2: Benchmarking Broadband Data Rates

 Nation or State

56/64 kilobits per second at 2, 50 and 200 kilometres

1.544/2 megabits per second at 2, 50 and 200 kilometres

155 megabits per second at 2, 50 and 200 kilometres

 United Kingdom 2004  229; 460; 583 Euro per month  464; 1691; 3612 Euro per month  11,964; 33,908; 71,795 Euro per month
 New York 2004  186; 410; 1009 Euro per month (56 kbps)  488; 1578; 4635 Euro per month (1.544 mbps)  n/a
 California 2004  88; 233; 689 Euro per month (56 kbps)  360; 1234; 3651 Euro per month (1.544 mbps)  n/a
 Germany  92; 414; 478 Euro per month  340; 1979; 2504 Euro per month  1600; 7511; 12,161 Euro per month
 Hungary  193; 337; 621 Euro per month  702; 2149; 5003 Euro per month  7813; 13,727; 23,868 Euro per month
 Japan  655; 1122; 1190 Euro per month  3164; 7301; 9046 Euro per month  9302; 50,583; 122,998 Euro per month
 Malaysia  2.6 Sen per MOU  4.8 Sen per MOU  8.43 Sen per MOU

ENDNOTES

[1] Benchmarking data is sourced from Teligen, the OECD, the European Commission, Intug, and the National Regulatory Research Institute.

[2] “MOU” stands for “Minutes of use”.

RELATED INFORMATION

Interconnection Pricing for VoIP

Last updated 17 Nov 2008

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