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Fibre (FTTx ) Broadband Cheaper Than Cable

Posted: 06th Dec, 2006 By: MarkJ
Point-Topic's latest research finds that significant worldwide FTTx (Fibre To The Home etc.) price reductions have taken the average cost of broadband over fibre below that of cable in the last quarter:

The data comes from the latest research by Point Topic on global broadband tariff benchmarks, using data to 30 September 2006.

According to the report, FTTx tariffs went down 12 per cent to US$28.1, 3 per cent lower than the average monthly rental for cable modem services.

'Consumers’ preference for DSL and cable modem services remains very strong, but FTTx is certainly catching up, thanks in part to this price cut', says Vince Chook, Analyst at Point Topic. 'If the decline continues, it is very likely that FTTx will overtake cable modem to [become] one of the main players in high-speed broadband services [for] the future.'

As compared to Q2 2006, the general downward trend of broadband service pricing for DSL and cable modem service slowed slightly. The average monthly rentals for DSL and cable modem services only dropped by a mere 2.5 and 2.1 per cent respectively.

'DSL rentals had been undergoing major price reductions since the beginning of 2006', points out Vince Chook. 'But with such a small drop over the quarter, cable modem is certainly losing its price competitiveness', he adds.

The average DSL monthly rental is now under US$25 at PPP (purchasing power parity) rate - US$4.5 less than the average for cable.

This is good news for a technology that’s only just started to push into the consumer market; unfortunately we won’t be seeing it on a larger scale in the UK until BT recognises the potential.
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