Consumers worldwide getting a better deal on broadband

[news release] The latest analysis from Point Topic on average tariffs and packages on offer for broadband worldwide gives a general story of increasing speed and decreasing prices.Over the quarter there is some variation, but if you look at 2008 as a whole consumers are getting more bandwidth for their money.Of the three primary broadband technologies, DSL has seen the largest fall in average price for a subscription down from $66.75 in Q108 to $53.32 in Q3 taking a worldwide average. This is a 20% drop in the first 3 quarters of the year. In comparison average subscription prices for cable are down just over 12% and FTTx down by 6.5%.Standalone tariffs (broadband service only) are the basis for this analysis. It is increasingly common for operators to offer bundles of services, broadband plus telephone service plus TV and sometimes mobile as well. Comparison of speeds and prices for the bundles is almost impossible however given the variations in content between the offerings.
Regional variations on technology, prices and speedsThere are wide variations on subscription price and speed across regions and technologies. To aid comparison Point Topic has calculated the average amount a consumer will pay for a megabit(Mb) of bandwidth.DSLWhile DSL prices have seen the largest average falls in 2008 it is still the most expensive broadband option for the bandwidth on offer.In the Middle East & Africa for example consumers are paying over $46/Mb which when compared to Western Europe at $6.23/Mb reveals the wide variation in the markets.However this is still a major improvement in the year for consumers, prices in the MEA region have dropped by 7% on average in the year and speeds are up 13%. DSL broadband has a large number of operators competing for consumers and the pressure on pricing and speed is intense particularly when you factor in the increasing availability of other broadband technologies.North America & Canada however as a mature DSL market where competitive pressure has been strong for a while shows only a small fall in average price and correspondingly minor increase in speed since Q108.Average DSL speeds on offer have been higher in Asia Pacific than North America since implementation but the gap has been closing. Even now though the average price per megabit is $16.10 in North America compared to $3.80 in Asia Pac.CableImplementation of DOCSIS 3.0 has gathered pace during 2008 in North America and Western Europe enabling cable operators to offer significantly higher speeds and the price per megabit on offer has improved.In Q108 cable broadband was more expensive per megabit in Western Europe than North America, $7.45/Mb and $5.80/Mb respectively. Now though operators in Europe are offering higher speeds and lower average prices for their packages, while in America the speeds have gone up but the price hasn’t changed meaning the comparison now stands at $4.80/Mb and $4.89/Mb respectively.Other regions have been less volatile with very small changes in speed but there was still some downward movement in average prices with Eastern Europe showing an average reduction of 25% on prices for cable packages in the first three quarters of the year.FiberFiber broadband has started to make significant progress in 2008. As has been previously noted consumers are happy to move to fiber where it is offered.Where it is available fiber packages are priced very competitively with the other broadband technologies and given the higher speeds possible there is good reason for the transfer of consumers in 2008 as in South Korea and Japan.Taking worldwide averages of the price per megabit fiber is 4 times cheaper than cable and 10 times cheaper than DSL in Q308.Given the strong position it occupies there has been little reason for the fiber operators to change their speed or pricing levels. Operators have the option to increase prices and decrease speeds and still offer a better deal for consumers and there is evidence that this has been happening in some markets.This analysis is taken from the reports, Broadband Tariff Benchmarks – Report for Q3 2008 and Broadband Tariff Benchmarks – Report for Q1 2008 available to subscribers to the Operator Source service.This news release with graphs and tables is available from: broadband prices continue to drop [IDG]
Broadband subscribers all over the world are getting more for their money. The cost for cable, fibre and DSL subscriptions are all dropping.Broadband subscribers all over the world are getting more for their money. The cost for cable, fiber and DSL (digital subscriber line) subscriptions are all dropping, and at the same time speeds are increasing, according to market research company Point Topic.DSL has seen the largest average worldwide price drop, 20 percent during the first three quarters of 2008. Broadband users paid US$66.75 on average for a subscription in the first quarter and US$53.32 during the third.;390255299;390255299 broadband prices down 20 percent in 2008 [AP]
Prices for residential high-speed Internet service are down 20 percent globally from the start of the year, according to a British research firm.The biggest price drop is for DSL broadband over phone lines, with the average monthly price falling from nearly $67 in the first quarter to $53 in the third, according to the analyst firm, Point Topic.

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