Access must be priced in line with prevailing market conditions and conditions that can be expected in the future. This is a prerequisite for ensuring that we reach our profitability objective, says Karin Moberg, who is responsible for Telia’s broadband initiative for the consumer market in Sweden, in a press statement.
Effective September 1, Telia is increasing the price for individual access to the Telia ADSL Broadband service from SEK 250 per month to SEK 325 per month.
Karin Moberg, president of Telia e-bolaget, explains: Current revenues from advertising and content-based services, as well as those that we can expect in the future, cannot compensate for our present price level, which is based on other market conditions. At the same time, demand has been very strong for our services and we feel that it provides scope for higher broadband access rates. Access must be priced in line with prevailing market conditions and conditions that can be expected in the future. This is a prerequisite for ensuring that we reach our profitability objective and can continue to develop access solutions and broadband services.
In Sweden, prices for broadband access, after Telia’s increase, are comparatively low. Rates range between SEK 400 and 500 per month in other
parts of Europe and the US.
The price increase on September 1, 2001, is valid for individual connections to Telia ADSL Broadband. Households that have signed group access agreements can also expect an increase on the same level, although the exact dates and prices will be set after Telia conducts negotiations with the Swedish Association of Private House Owners.
