Swedish ISP and telco Telia has started selling ADSL Internet connection
technology in the region, and has changed its price level to pursue the
market more aggressively.
Telia now charges a one time fee of SEK 975 (US$115) and a monthly flat rate
is SEK 200 (US $23), but the price cut is for large property owners. The new
fee structure was based on consumer demand, the company said. Telia
spokesman Mikael Ek said the company expects to offer ADSL to consumers
beginning in the second quarter of this year, but the price level will be a
bit higher.
The price restructuring depends on what Telia is
calling “group agreements” — bulk contracts for apartment buildings
containing many households.
Telia has a virtual monopoly on phone users in Sweden, and has the advantage
of being able to reach almost all of Sweden’s households through its telecom
service. When other operators started to build up infrastructure for
broadband usage, Telia focused on promoting ADSL through its wired homes. As
more competition moves in with cable connections, LANs ands wireless
systems, Telia has reacted by adopting a new price level.
Telia has said that the ADSL choice is a simple decision, because the
solution requires little equipment installation, users prefer the low cost,
and the infrastructure is already in place.Users do need an Ethernet card
and a cable for an ADSL connection, plus an ADSL modem that can be borrowed
at no cost. The connection speed is about 500 kbps.
The company has tested ADSL for some time, but the rates was based on the
transfer volume.
About 50 percent of all the new ADSL deals Telia has made involve property holders and
landlords, and the contracts Telia has already signed include 150,000
households in Sweden. Telia is now pursuing landlord contracts that include
more than 500,000 homes.