Telia raises monthly rate for broadband access

Telia raises monthly rate for broadband access Demand for Telia's broadband services has grown very strongly during the past half year at the same time as access rates for customers have remained unchanged. In addition, revenues from advertising and content- based services have been delayed. Based on these changed conditions, Telia is raising the monthly rate for the Telia ADSL broadband access service on September 1 this year. "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. 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. The connection fee - SEK 1,475 - will not be raised. 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." The results of a recent survey indicate that most of Telia's customers are satisfied or very satisfied with their broadband services. Their positive opinion of Telia can be explained primarily by the high transmission speed in Telia's network and their possibility to be connected 24 hours a day at a fixed monthly rate. In Sweden, prices for broadband access, even after Telia's increase, are comparatively very low. Rates range between SEK 400 and 500 per month in other parts of Europe and the United States. The price increase on September 1 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 (Villaägarnas Riksförbund), building owners and tenants' rights associations in Sweden. For further information journalists can contact: Karin Moberg, President, Telia e-bolaget, phone +46 8 456 88 20. Press contact: Anders Zellman, phone +46 703 29 65 77, or Jan Sjöberg, phone +46 705 57 48 58. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/20/20010320BIT01220/bit0002.doc http://www.bit.se/bitonline/2001/03/20/20010320BIT01220/bit0002.pdf