Broadband prices crash around the globe

Broadband prices crash around the globe

Summary: The cost of subscribing to a broadband Internet service is falling all over the world and the price difference between cable and DSL services has almost disappeared

TOPICS: Networking

Broadband Internet access prices are plummeting as cable and DSL operators compete for subscribers and users get fed up with dial-up, according to a report published by broadband research group Point Topic.

Broadband cable companies and DSL operators cut their monthly subscription rates by an average of 16 percent and 13 percent respectively during the first half of 2004, according to Point Topic's Broadband Tariff Benchmarks.

DSL access has historically been cheaper than a comparable cable modem service, but operators are addressing the issue and now the costs are at virtual parity.

According to the research, the average monthly rental for broadband cable services fell from $39 to $32, while DSL charges fell from $32 to $29.5.

Haroon Butt, senior analyst at Point Topic, said the price cuts indicate that cable operators are playing catch-up with their DSL rivals both in terms of price and subscriber numbers; and Butt expects the trend to continue.

"With cable operators showing every sign of waking up to the challenge from DSL, consumers can look forward to a period of increased competition and we fully expect aggressive pricing strategies to continue to be a feature," said Butt.

However, the exception to the rule was Yahoo Japan, which increased the price of its consumer broadband service in Japan by 20 percent. However, despite the price rise, Yahoo Japan remains the cheapest DSL provider in the world.

Butt said the price rise could have been because Yahoo Japan simply wants to price its service offerings closer to the international average, but he warns that if everyone charged as little as Yahoo Japan, there would be a significant shake up in the global market.

"If their prices were matched around the world, there would be a lot more broadband subscribers and a lot fewer broadband suppliers," said Butt.

Topic: Networking

Munir Kotadia

About Munir Kotadia

Munir first became involved with online publishing in 1998 when he joined ZDNet UK and later moved into print publishing as Chief Reporter for IT Week, part of ZDNet UK, a weekly trade newspaper targeted at Enterprise IT managers. He later moved back into online publishing as Senior News Reporter for ZDNet UK.

Munir was recognised as Australia's Best Technology Columnist at the 5th Annual Sun Microsystems IT Journalism Awards 2007. In the previous year he was named Best News Journalist at the Consensus IT Writers Awards.

He no longer uses his Commodore 64.

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  • Dear Sir,
    The dramatic drop in the costofusing broadboand can only be god for old age pesnionersnsuch as myself as I use it to keep in touch with my family world wide and even play a daily game of "SCRABBLE" with my daughter in Tampa.
    I only hope that those of us who paid a full years subscription a year ago will also benifit and that those companies lowering their prices will also reduce our monthly bill as well - after all, it was us who set them up in business in the first place and put them into such a profotable situation.
    Sincerely yours,
    Jimmy Fleeman