As part of the column published last week on internet charges around the world I asked the Computer Society of Bermuda (CSB) to compare the island's rates with the OECD's figures.

The CSB was not able to get the figures to me in the few hours I gave them, but I'm glad they took the time to fully look at the situation in a report the organisation published yesterday.

The organisation has done a brilliant job of comparison, even going one step further by including smaller jurisdictions as a means of better understanding the Bermuda situation.

Using the OECD's own system the CSB compared price per megabit of service on a purchasing power parity basis.

On that comparison Bermuda clocks in at $143.25 per megabit of speed, with the next highest being Turkey at $97.43, followed by Mexico ($63.89), Greece ($29.13), and Canada ($28.14).

In a comparison of the worldwide average price for broadband service, again on a PPP basis, Bermuda's is at $138.93, followed by the Czech Republic ($88.99), the Slovak Republic ($79.61), Turkey ($79.13), and Mexico ($71.85).

The US price is $53.06 and Canada's ($51.07).

The CSB also looked at Bermuda compared to Malta, Jersey, the Cayman Islands and Guernesy.

Based on advertised market price, only Guernsey residents pay more for internet service.

Malta residents pay $77.19 for six Meg DSL service. The price includes speed and access. In Jersey you would pay $77.50 for two Megs of DSL service speed.

In the Cayman Islands two Megs speed of fixed wireless service, including speed and access costs $115.38.

Next comes Bermuda, where prices are $134.95 for two Meg cable modem service, or $148.95 for DSL, or $179.90 for fixed wireless. The price includes speed and access.

The most expensive island is Guernsey, where residents pay $185.80 for two Megs of DSL service.

The CSB concludes that Bermuda does not find itself in a leading position.

"Even off the world stage, it appears challenged on price and service delivery," the CSB stated in an e-mail.

To solve the problem of high prices holding back innovation and business, the CSB calls on providers to consider removing 128k, 256k, 512k services and make the base at one Meg.

Service offerings could be simplified to one Meg, three Meg and eight Meg offerings, giving people a choice of low, medium or high speeds.

The CSB also calls on providers to introduce volume caps instead of basing prices on speed brackets. Meaning those who download more will pay more, while those who do not download as much but still want the speed can have a better price balance.

The CSB notes that providers have said that when a Unified Domestic Licence (UDL) comes into place prices and offerings will get better.

"We will take a wait and see approach on how the UDL innovates the market," the CSB stated.

Providers have also said that when new cable lines come into Bermuda prices will also drop.

"The problem with following the providers explicit thinking is price drops and speed increases, as defined by them, appear to be absent of real competitive expectations by customers and being a fair reflection of international market conditions to deliver the service," the CSB claims.

Still Bermuda has an excellent infrastructure, the CSB admits. The Island has the potential to deliver fiber to the home, if BTC or CableVision were to move to that platform.

"Right now, we know the market is not working efficiently," CSB concludes. "Will the regulatory reform change that? Maybe. What it may come down to is someone being really creative or innovative."

By the way the CSB's "two Meg Effect" report is published by the organisation as a means of helping people make a cost effective choice based on their needs among the many levels of service available on the island. It is a great service. The report is available at www.csb.bm

Now I would like the internet service providers on the Island to answer back. Come on, respond to the criticism using the e-mail below. Your public awaits!

Send comments to Ahmed at elamin.ahmed[AT]gmail.com