South Africa’s broadband is cheaper, and slower, than you think

Point Topic has released its Q1 2016 global residential tariffs and bandwidths report, which shows that the average monthly charge for a residential broadband service is $101 (R1,516).

While this monthly price is much higher than what South Africans pay on average, it comes with a big benefit: high speed.

The average speed provided by residential broadband services globally in Q1 2016 was 92Mbps, compared to 85Mbps in Q4 2015.

Most South African fixed broadband users subscribe to an ADSL service, with speeds of up to 10Mbps. This is far lower than global standards.

The reason for the high average global broadband speed is the growth in fibre-to-the-home connections.

The average speed provided on a fibre connection globally is now 154Mbps – up from 143Mbps three months earlier.

“This trend will continue, with a significant number of operators accelerating the rollout of FTTH, Docsis 3.1, and networks and launching Gigabit speeds,” said Point Topic.

Average price per megabit

With little increase in the average monthly price, the increase in the average broadband speed means the average global cost per megabit dropped from $1.17 to $1.10 over the last three months.

The cost per megabit on FTTH is significantly lower than on copper (ADSL and VDSL), as shown in the chart below.

Broadband residential cost per megabit

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South Africa’s broadband is cheaper, and slower, than you think