Broadband Prices Drop 20%

Global broadband access prices have dropped about 20 percent, on average, in the first three quarters of 2008, say researchers at Point Topic. Digital subscriber line prices have dropped from $66.75 in the first quarter to $53.32 in the third quarter. Average subscription prices for cable are down just over 12 percent and fiber-to-customer prices declined by 6.5 percent.

Keep in mind that the Point Topic analysis is based on stand-alone tariffs. Customers might be paying less if they are buying their broadband access as part of a bundle.

DSL prices have declined the most in 2008, though Point Topic researchers say it still is the most-expensive broadband option, on a price-per-megabit basis.

In the Middle East and Africa, for example, consumers are paying over $46 per megabits per second basis, compared to $6.23 per Mbps in Western Europe.

Prices in the MEA region have dropped by seven percent on average in the year and speeds are up 13 percent. In part, the price declines for DSL reflect the greater degree of competition in that segment, compared to cable or fiber-to-customer alternatives.

In North America, cable modem price-per-megabit metrics are close to Western European levels. Western Europe prices of $4.80 per Mbps are close to North American prices of $4.89 per Mbps.

In Eastern Europe, cable modem prices declined about 25 percent.