2006 saw prices for mobile services and Internet access drop dramatically

Heise writes…The annual average price of mobile telephone services in 2006 was 10.7% below that of 2005, the Federal Statistical Office reports. With the prices for mobile telephone services already having dropped in 2004 and 2005 (in year-on-year terms by 1.1% and 3.0% respectively) the trend has thus continued in 2006, compounded in particular by the appearance of mobile services discount dealers and so-called no-frills providers. Moreover the price war raging among DSL service providers had a marked impact in 2006 on the prices charged for Internet access: Thus in year-on-year terms the annual average price for using the Internet went down by 5.1%. 

In December 2006 consumer prices for mobile telephone services decreased by 6.3% when compared with the same month of the year before. In sequential terms prices dropped by 0.2%. Between December 2005 and December 2006 the cost of using the Internet fell by 5.3%. From November to December 2006 the appropriate prices went down by 0.9%.

From a consumer’s angle the general price index for telecommunication services (fixed-line, mobile and Internet) was 3.0% lower in 2006 when compared with 2005. In December 2006 the general price index decreased by 1.8% on December 2005. Declining by a mere 0.1% the general index remained virtually unchanged from November to December 2006.