The analysis examined the prices of a typical ‘basket’ of communications services (fixed-line phone, mobile phone, broadband and pay TV) for five household types. It compared the prices available to consumers in the UK (in July 2011) with those in France, Germany, Italy, Spain and the US. Overall, the UK offered the lowest prices for all five baskets based on buying services individually and four of the five baskets when including multi-service ‘bundles’.

Overall, the price of mobile phone services in the UK were 36 per cent lower than in the next least expensive country (France) and were 10 per cent lower than a year previously. However, prices for low-use mobile phone services (such as pay as you go) in the UK increased between July 2010 and July 2011 (as they did in France, Germany and Italy). Fixed-line voice prices in the UK were also lower than in all other countries.

Looking at the prices for a typical family ‘basket’ of communications services consisting of a fixed-line phone with high use, four mobile phones with varying use, a fixed broadband connection and a basic pay TV subscription, the lowest price available to consumers in the UK was £114, second only to France (£79). Prices for this basket in the UK increased by 10 per cent between 2010 and 2011, largely due to increases in the prices of the low-use mobile phone services.