Worldwide broadband prices continue to drop

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.

In comparison the average subscription prices for cable Internet was down just over 12 percent and for different versions of fiber access to the home, usually dubbed FTTx, was down by 6.5 percent.

The continued price erosion is primarily down to competitive pressure, according to Point Topic CEO Oliver Johnson. But the dire economic climate also plays its part.

There are still large differences in what broadband subscribers are paying for their access.

In the Middle East and Africa consumers are for example paying over US$46 per megabit for DSL access, compared to Western Europe where subscribers are paying US$6.23 per megabit, according to Point Topic.

The average price per megabit using DSL in the North America and Asia Pacific is US$16.10 and US$3.80, respectively.

Fiber is by far the cheapest access technology if prices per megabit are compared, it was four times cheaper than cable and ten times cheaper than DSL in the third quarter. When average monthly subscription prices are compared cable Internet is the cheapest option.

The future of broadband will increasingly be about fiber. When fiber has been put in place it becomes the dominant broadband access technology in four to five years, at the cost of cable and DSL.

"DSL is going to have a really hard time, and we will see a gradual erosion of its market share," said Johnson.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags broadbandADSL

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?