Skip to main content
Jump to navigation
Person using a laptop keyboard

Broadband users around the world are gaining access to cheaper broadband services, as the price per Mb continues to fall.

A new study conducted by research company Point Topic looked at regional pricing for the three main fixed line technologies – DSL, cable and fibre over a 15-month period.

The report – which considered broadband deal prices per Mb between Q4 2009 and Q1 2011 – found that the cost of internet services, relative to the speeds offered, fell across all regions.

A significant 40 per cent price drop was witnessed across Latin America, followed closely by North America at 35 per cent.

Smaller reductions were witnessed in the mature economies of Western Europe, however broadband prices were up to four times cheaper than in other regions at the start of the study period.

Fiona Vanier, Senior Analyst at Point Topic, noted that some markets are changing more rapidly than others.

"They tend to be where there might have been more margins in the original pricing or the operators are significantly out of step with what their competitors have managed to put together," she stated.

However, Ms Vanier said the crucial statistic is the increase in the headline speeds offered by broadband services, rather than the monthly subscription cost.

"Consumers still perceive speed, or downstream bandwidth to be more precise, as a significant factor in their decision making," she stated.

Broadband prices have remained relatively stable since 2009, but consumers have received more for their money in terms of increased downloading capacity.

In the UK, the rollout of fibre broadband technology has increased the broadband speeds available to many homes and businesses, with Virgin Media constructing a 100Mb network and BT providing wide access to 40Mb services.

Meanwhile, advances in ADSL broadband technology – such as the introduction of line bonding – have seen consumers gain access to faster speeds even in areas where fibre services are yet to arrive.

Join the conversation

comments powered by Disqus

Stay up to date

  • Google+ Follow uSwitchTech
  • Subscribe to our RSS feed

Latest Comments

Search news