MADRID, April 10 (Reuters) - Telefonica said onWednesday it is to offer consumers in Spain next week asuperfast internet service for under 30 euros ($39.17) a monthin a one-year promotion, heightening the already fiercecompetition in the country's telecoms market.
The offer, which is 25 percent lower than the usual priceTelefonica charges for fibre internet connections with speeds upto 100 Mb, will launch on Monday.
Spain's telecoms market has become increasingly competitivein recent months as cash-strapped consumers ditch their mobilesand move to cheaper providers to save money.
The country's unemployment rate stands at 26 percent andoperators have responded to declining consumer confidence withattempts to under-cut competitors to retain market share.
The former monopoly, whose revenues in its recession-hithome market dropped 13 percent last year, loses hundreds ofthousands of mobile connections every month but has managed tostabilise its broadband business with a bundled "quadplay"package.
Rivals France Telecom and Vodafone saidlast month they would build a joint fibre optic network in Spainto bring fast broadband speeds to 6 million homes.
France Telecom's local unit Orange Spain said on Monday ithad launched its own fibre optic offering, which would reachalmost 100,000 homes before the summer.
Orange also said on Monday it would offer clients aninternet connection with speeds of up to 100Mb and phoneservices for 25.9 euros a month for the first year, undercuttingTelefonica, albeit only in the area of the market covered by itsmuch smaller network.
Cable operator ONO offers a 100 Mb internet and fixed linepackage for more than twice the price of Telefonica's new offer.
Vodafone (VOD)