Global Broadband ISP Customers Pay Half as Much for Bandwidth than in 2008
Posted: 02nd Feb, 2011 By: MarkJ
Analyst firm Point Topic UK has released its latest survey of world broadband tariffs and found that modern households now pay 50% less for their bandwidth than they did in 2008, largely due to the increased competition between internet providers (ISPs).Oliver Johnson, CEO of Point Topic, said:
"DSL [ ADSL ] prices in particular are being squeezed. Competition between operators and access technologies is driving the search for more markets and DSL is well placed to capture customers who don’t need full speed 24/7 bandwidth.
Many users do not use their broadband for more than a couple of hours a day and when they do it’s often for applications that use relatively little bandwidth. They care much less about the cost per megabit, where fibre has the edge, than about the upfront and monthly charges and DSL wins that battle hands down."
"DSL [ ADSL ] prices in particular are being squeezed. Competition between operators and access technologies is driving the search for more markets and DSL is well placed to capture customers who don’t need full speed 24/7 bandwidth.
Many users do not use their broadband for more than a couple of hours a day and when they do it’s often for applications that use relatively little bandwidth. They care much less about the cost per megabit, where fibre has the edge, than about the upfront and monthly charges and DSL wins that battle hands down."
However the drop in DSL prices is not worldwide and in Asia Pacific countries the costs have actually increased over the last two years. According to Point Topic, this is because true ultrafast fibre to the building ( FTTB / FTTH ) connections are becoming a popular way of providing broadband in related markets.
Oliver Johnson concluded:
"Subscriber behaviour is changing. The increasing popularity of high bandwidth applications, particularly video, mean that low cost per megabit carries more weight than low subscription costs. Operators are seeking ways of fulfilling existing needs and scrambling to create new ones.
The developing broadband markets will continue to see rapid growth particularly in DSL subscriptions in 2011. However, the advent and spread of connected TV is going to be the real news in the mature markets. Enabling consumers to watch streaming video on their TV sets will drive bandwidth demand up significantly and where fibre is available we’ll see appreciable growth in its market share."
"Subscriber behaviour is changing. The increasing popularity of high bandwidth applications, particularly video, mean that low cost per megabit carries more weight than low subscription costs. Operators are seeking ways of fulfilling existing needs and scrambling to create new ones.
The developing broadband markets will continue to see rapid growth particularly in DSL subscriptions in 2011. However, the advent and spread of connected TV is going to be the real news in the mature markets. Enabling consumers to watch streaming video on their TV sets will drive bandwidth demand up significantly and where fibre is available we’ll see appreciable growth in its market share."
The market for true ultrafast fibre optic broadband products in the UK is, by contrast to the Asia Pacific region, still taking its first baby steps. However we're already hearing from early adopters that those who take a Next Generation Access (NGA) service typically eat up a lot more data than they ever did before.
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