Measuring the prices of voice services is complex. The amount consumers pay each month is determined by a mixture of monthly subscription fees, per-call and per-text charges. Adding to the complexity is the fact that many subscriptions include a certain number of included calls, minutes or texts.

One solution for comparing prices amid this complexity is building a standard “basket” of monthly consumption and then comparing how much it would cost to purchase this basket in each OECD country. The OECD has a methodology for building representative baskets which was developed with input from member countries and telecommunications operators. The baskets are routinely updated as usage patterns change.

Each OECD basket represents one standard level of consumption and is not intended to reflect specific calling patterns in a particular country. National calling patterns often vary considerably between countries. Instead, the baskets compare the price of buying a set amount of telecommunication services across countries. The breakdown of baskets is decided in discussion with operators and policy makers from across the OECD.

 

Fixed (PSTN) Baskets

The OECD fixed line baskets examine the price of making a set basket of calls over the period of one year. The baskets include a set number of calls which vary according to duration, distance, destination (fixed, mobile and international), and time of day. The distribution of calls is based on data from operators across the OECD who provide information on actual calling patterns. Once the breakdown is set and agreed upon, the same calling pattern is used to compare prices of different plans across the OECD. Operators submit their best offers considering the demands of the basket.

(per year)

Residential	Calls	Total minutes*	Data (August 2012)
20 calls basket	20	63	StatLink
60 calls basket	60	190	StatLink
140 calls basket	140	520	StatLink
420 calls basket	420	1 968	StatLink
Business	Calls	Total minutes*	Data
100 calls business basket	100	206	StatLink
260 calls business basket	260	606	StatLink

* Assumes calls are billed by the second. Operators rounding up to the nearest minute will require more minutes to fulfil the baskets.

 

Mobile Baskets

The OECD mobile baskets examine the price of making a set basket of calls over the period of one year. The mobile call baskets include a pre-determined number of calls, SMS and MMS messages each year. The ratio of on-network and off-network calls is determined through discussions with operators. Operators also provide the OECD with data on SMS and MMS patterns.

(per year)

Volume	Calls	SMS	MMS	Total minutes*	Data (August 2012)
30 calls basket	30	100	100	50	StatLink
100 calls basket	100	140	140	188	StatLink
300 calls basket	300	225	225	569	StatLink
900 calls basket	900	350	350	1 787	StatLink
40 calls prepaid basket	40	60	60	75	StatLink
400 messages basket		400			StatLink

* Assumes calls are billed by the second. Operators rounding up to the nearest minute will require more minutes to fulfil the baskets.

 

Leased Lines

Leased lines are symmetrical transmission channels provided permanently for the duration of a contract. They are often used by businesses as a way to connect offices and branches to each other or link back to a telecommunications provider. Businesses commonly use a network of leased lines as a way to effectively manage their own telecommunication services. DSL connections are increasingly replacing leased lines for businesses and this is part of the explanation for falling prices over the previous decade. The leased line price data below represents

 

OECD basket of national leased line charges, monthly price, August 2012, VAT excluded, Aug. 2012

StatLink

 

For up-to-date basket results, the Teligen T-Basket system provided by Strategy Analytics provides quarterly updates and extended detail. Please see http://www.strategyanalytics.com/teligen.html for more details.