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November 11, 2008

Report: Consumers Worldwide Getting a Better Deal on Broadband

Analysis from Point Topic’s latest report on global broadband tariffs shows that consumers are getting a better deal on prices and speeds than ever before.
“We have looked at global and regional averages for subscription pricing and speeds on offer across the three major broadband technologies, DSL, cable and fiber,” said Fiona Vanier, senior analyst at Point Topic. “Average prices for a DSL subscription have fallen 20 percent worldwide over the first three quarters of 2008, cable prices are down 12 percent and fiber by 6.5 percent.”

Point Topic collates data every quarter from operators that service 95 percent of the worlds’ broadband consumers. This allows comparative analysis across time of the prices, speeds and other packages on offer. This analysis is based on standalone packages only. Many operators offer bundles of services (broadband + phone + IPTV (News - Alert) and sometimes mobile); however, the differing content of these packages makes direct comparison impossible.
DSL is the most expensive broadband service, with prices ranging from $3.85 per megabit in Asia Pacific to $46.42 per megabit in the Middle East and Africa. Cable ranges from $2.35 per megabit in Asia Pacific to $15.51 per megabit in Latin America. When compared region to region, cable averages between 60 percent and 80 percent the cost of DSL per megabit. The exception being North America where consumers pay more than 3 times as much for DSL bandwidth as they do for cable.
The high speeds on offer over a fiber connection mean 1 megabit of bandwidth costs just $0.90 per month in South Korea and can go as low as $0.44 in Japan. At the more expensive end the average charge in the Northern European grouping of Sweden, Denmark and Norway is $1.82/Mb and consumers pay $2.18/Mb in Hong Kong and China.

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Bob Emmerson (News - Alert) is TMC's European Editor. To stay abreast of the latest news affecting the European market, check out Bob's columnist page.

Edited by Mae Kowalke


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