Tuesday, 16 June 2009

Price war in The Netherlands. UPC drops prices

Well, UPC has declared war on KPN. It has drastically dropped its's prices as of today. As you might remember I named UPC as the price quality winner recently. Now it's for a similar offer also the cheaper option. The worst comparison is the 60/6 offer. KPN asks 110 euro for a 60/6 triple play offer. UPC asks 74 euro for a similar offer.  KPN offers free viewing of the Dutch football league, but UPC throws in free calling in Europe (including Turkey)

Based on head-line speeds, KPN has a problem both in the fibre space as in the DSL-space. The public won't understand an argument based on the difference between Ethernet and Docsis 3.0 when it comes to fibre. The headline speeds of ADSL2+ are lower and the price difference is not substantial to UPC's 30mbit offer. For instance Telfort, KPN's cheap brand asks 34,95 for 20mbit and unlimited national calling. UPC asks 48, but throws in a free digital tv and a PVR for those customers that already have analogue Cable TV with UPC (almost 90% of the potential subs in UPC's region)

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