About this study
In December 2023, we published a report on pricing and usage of telecoms services in the UK, which also contained an overview of additional measures (such as social tariffs) operators have put in place to support financially vulnerable customers. This update to that report provides a cross-country analysis of the UK against key comparator markets (France, Germany, Italy, Spain, Japan and the US).
Summary
Fixed broadband download speeds in the UK saw a notable improvement in 2022, with data consumption also up. Operator capex reached £7.9bn in 2022, with much of this dedicated to expanding full fibre access. Network investment is driving improved service levels, with average fixed download speeds surging 30% between 2021-2022. Meanwhile, average monthly fixed and mobile data usage continue on an upward trend, increasing 8% and 25% year-on-year, respectively.
The UK’s most common fixed broadband speed tier is no more expensive than it was seven years ago. Despite a minor increase between 2021-2022, prices in the 30-100Mbps range (which accounts for the majority of UK connections) have held flat overall. The UK is the third cheapest of the countries studied, narrowly behind the least expensive (Germany and Spain).
The price of 5GB of mobile data in the UK is a third cheaper than it was in 2017. In the UK, the monthly price for 5GB of data (reflecting average usage) saw a small uplift – less than £1 – between 2021-2022. Nevertheless, this price has fallen by more than 33% over the study period, making the UK the second cheapest amongst our comparator countries.
The price of a typical bundle of telecoms services in the UK remains amongst the lowest in Europe. A bundle of 30-100Mbps fixed broadband and 5GB of mobile data is a good representation of the average telecoms consumer in the UK. The monthly price of this basket rose slightly in 2022 but it is still 13% lower than 2017, making the UK the second cheapest country in our study – and half the price of the US.
UK operators offer the greatest value for money when compared internationally. When broadband prices are considered relative to usage per capita, the UK consistently performs best amongst our study countries. In 2022, UK consumers paid 10% less for broadband than the previous year based on the level of data they consume. Similarly, the price of broadband per Mbps has fallen 25% year-on-year as download speeds have improved.
