Broadband research firm Point Topic recently released their Broadband Tariff Benchmark for the third quarter of 2010, giving accurate information of broadband pricing across the globe.<\/p>\n
The Point Topic research focuses on the entry-level tariffs of 54 major DSL, cable modem and FTTx \/ FTTP operators across the Americas, EMEA and Asia Pacific. <\/strong><\/p>\n Research basics<\/strong><\/p>\n For research purposes ‘entry-level broadband’ has been defined as the lowest-cost service offered with a downstream speed of at least 256 Kbps.<\/p>\n Point Topic previously covered each of the four main elements that constitute the overall cost of a DSL service – installation, equipment, monthly rental and other costs. To simplify the analysis, this approach was abandoned and the research is now limited to monthly rental costs for the typical entry-level services.<\/p>\n The entry level broadband services from various operators and countries vary significantly according to speed, usage limits and even time limits associated with broadband offerings, but Point Topic took most of these factors into account for their research.<\/p>\n What is particularly challenging in a South African environment is the restrictive usage limits associated with entry level ADSL offerings. Here Point Topic took a pragmatic approach.<\/p>\n “Some operators offer entry-level services with data volume limits. In most cases, these limits are generous enough so as not to affect light or medium users. Point Topic includes this type of service as a reasonable entry-level service, since it does not involve adding a usage charge to the monthly cost for the typical user,” the research firm said.<\/strong><\/p>\n Entry level broadband pricing<\/strong> (1 USD = R6.90 ZAR)<\/p>\n According to Point Topic the average worldwide entry level broadband service costs are R189.00 (USD 27.42) for DSL, R202.00 (USD 29.25) for cable modem and R231.00 (USD 33.44) for FTTx.<\/p>\n In South Africa Telkom’s entry level 384 Kbps service, which has a 1GB monthly usage limit, retails for R199.00 per month (excluding analogue line rental). <\/p>\n When it comes to uncapped entry level ADSL pricing MWEB is the best option with an uncapped 384 Kbps service at R349 per month.<\/p>\n South Africa’s pricing is therefore not significantly higher than global averages regarding entry level ADSL services, but when one digs a bit deeper it becomes clear that we pay far more for the same value than our international counterparts.<\/p>\n Point Topic uses the widely accepted measure of Cost per Megabit (Price\/Mbps) to establish the value to customers. When looking at a Cost per Mbps comparison for entry level DSL services South Africa is twelve times more expensive than the global average of R79 per Mbps.<\/p>\n The follows table clearly shows the value for money in terms of price\/speed which entry level broadband users get in various regions.<\/p>\n The table above shows that while there is an encouraging trend of lower prices and higher usage limits in South Africa, we are still lagging behind in terms of overall value for money.<\/p>\n It is further interesting to note that while both fixed line and mobile broadband prices are still falling in South Africa, the inverse is happening globally.<\/p>\n Point Topic’s research revealed that ADSL, cable modem and fibre connections globally experienced a sharp increase in their average pricing over the last few months.<\/p>\n “Some operators surveyed based in North America, Europe and Asia Pacific increased the price of their entry-level offerings by discontinuing cheap tariffs in favour of new more expensive ones or increasing the cost of existing tariffs,” Point Topic said.<\/p>\n\n\n
\n \n \n Region<\/strong><\/td>\n Price\/Mbps<\/strong><\/td>\n<\/tr>\n \n Asia Pacific<\/td>\n R35.00<\/td>\n<\/tr>\n \n Western Europe<\/td>\n R35.00<\/td>\n<\/tr>\n \n Eastern Europe<\/td>\n R36.00<\/td>\n<\/tr>\n \n South and East Asia<\/td>\n R55.50<\/td>\n<\/tr>\n \n North America and Canada<\/td>\n R70.80<\/td>\n<\/tr>\n \n Middle East and Africa<\/td>\n R140.10<\/td>\n<\/tr>\n \n Latin America<\/td>\n R159.60<\/td>\n<\/tr>\n \n South Africa (MWEB Uncapped)<\/td>\n R931.00<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n