Broadband prices compared

Point Topic’s broadband tariff benchmarks report reveals how broadband prices compare based on technology and region

Staff Writer

June 4, 2012

Point Topic recently unveiled their broadband tariff benchmarks report for the first quarter of 2012, revealing that DSL is slower and more expensive (per Mbps) than cable and fibre.

Point Topic’s broadband tariff benchmarks report compared the highest, lowest and average subscription charges and corresponding bandwidths by technology across the world. The report focuses on DSL, cable and fibre connections.

According to the report, cable connections are on average the cheapest service both for residential and business offerings. However, fibre is the most cost effective service in terms of the amount the residential consumer pays per bit.

Average bandwidth by technology

According to the report, Fibre continues to dominate in “headline bandwidths on offer”, with peak average advertised speeds of between 30Mbps and 140Mbps.

The average advertised DSL speeds globally ranged between 4Mbps and 12Mbps. This is higher than South Africa’s offerings, which range between 384kbps and 10Mbps.

Average broadband speed by technology

Average price per megabit

According to the report, pricing for DSL continues to be driven by its positioning as a low entry cost service.

“If a consumer is going to be using a significant amount of bandwidth over a certain proportion of the rental period, cable and fibre services, where available, would be a more rational choice,” said Point Topic.

“Reductions in pricing per megabit for cable and fibre are driven by increases in the headline bandwidth on offer rather than changes in monthly subscription rates.”