While Americans pay a flat monthly subscription for unlimited local Internet access, Europeans traditionally pay by the minute. While their short-term revenues could fall, overall call volumes and Internet usage eventually should more than compensate. Europeans spend a quarter of the time that Americans do on the Internet. Price cuts are proliferating. Operators in Belgium and the Netherlands also have announced special Net rates or cuts in local charges.
Tougher regulation is responsible for much of the downward pressure.
Former monopolies generally charge high fees for competitors to gain access to the last mile of copper into individual homes. Not for much longer. And French regulators are reviewing France Telecom's connection charges. Mounting competition is having an effect, too. For the former phone monopolies, lower local prices represent at least a short-term threat.