According to the latest research from Analysys Mason, broadband pricing in Europe and the US dropped by €5 a month, on average, as broadband speeds went up by an average of 20% during the last year.

This drop in prices happened after a relatively flat period during the past recession, when prices held up.

At present, the average price for a fixed broadband service bundle, which includes any single service or double and triple play bundles, has come down to €40.7 a month. As the researcher says, it tracks over 1000 fixed broadband-based bundles in Europe and the USA to track this pricing.

About 20% of the tariffs Analysys Mason tracked during the second quarter of 2010 offered down- stream bandwidths of 30Mbps or greater although the proportion of subscribers that actually take these ultra-fast services is likely to be much lower than 20%. Consequently, the average price per Mbps per month has declined from €7.5 in the fourth quarter of 2009 to just €5.8 in the second quarter

Competition from mobile broadband services contributed to the downward pressure on fixed broadband tariffs. However, the research company alerts the premium which cellular providers charge for mobile broadband services is also eroding. Prepaid mobile broad- band services with usage caps of 3GB or more now undercut entry- level fixed broadband propositions.

Over a six-month period the median price of fixed broadband services, excluding voice and TV services – fell by €25.9 a month. When all service bundles are included, it was €40.7, down from €45.8 six months ago.