Price of FTTx connections up 7% globally
UK research firm Point Topic has released the results of its latest broadband tariff report, collating worldwide data to the end of last September, which finds that access technologies' standings within the overall market are becoming clearer.
“Within the world broadband consumer market the three dominant access technologies are becoming more clearly defined," said Fiona Vanier, Senior Analyst at Point Topic. "Fibre is a more expensive option in total cost but provides the most for your money. DSL is the cheapest per month, but the most per megabit. Cable providers are caught in between, they can’t offer the highest speeds, in areas where consumers can get fibre, they can’t offer the lowest prices where consumers can get DSL so they are forging a middle path,”
The biggest change in the year to date has been found to be the roll-out of DOCSIS 3.0 in a number of markets, enabling cable operators to increase the speeds on offer, up by more than 43% worldwide in the last 12 months on average, across all their tariffs. This is described as having enabled cable operators to increase prices (up 17%) while still delivering more per dollar than they have been previously.
In contrast, DSL worldwide entry levels prices have dropped 2% on average in the last 12 months, while speeds have increased by 5%. While many operators around the globe are implementing ADSL2+, allowing speeds of up to 24 Mbps as opposed to a maximum of 8 Mbps on ADSL, these speeds are not offered as an entry level service. It does however mean that DSL ISPs can target narrower markets and focus on a low overall cost strategy to help differentiate themselves from cable and fibre operators, according to Point Topic.