Saturday, September 02, 2006

Sorry cable, DSL still comes out on top.

Well, price wise that is. A recent study was performed on the costs of high speed internet access services in three major international markets. The study was designed to calculate the cost drop in these services within the specified markets. The study, done at Point Topic, came up with some startling results as far as cost was concerned in the broadband market.
The study concerned the cost of three popular services: DSL, Cable, and fiber optic (FTTx where x=Home or Business) in the United States (US), The Asian Pacific (SEA), Europe, Middle East and Africa (EMEA). The competition of these three types of service has grown fervent over the last year, as each one has attempted to provide additional services on the line besides internet access, including telephone and video service. That competition it seems has driven the costs down for the consumer to a more acceptable level, while at the same time the service at that level has improved in speed.
The resulting average costs per market were:

  • DSL US-$24.77 SEA-$19.61 EMEA-$31.64
  • Cable US-$36.21 SEA-$32.46 EMEA-$30.47
  • FTTx US-$39.95 SEA-$31.69 EMEA-$47.06

After vendor investigation, it was found that DSL rates were cut by vendors the most out of all three services. With only two cable providers cutting their prices since 2002. Only in one market was Cable on average cheaper than DSL, the EMEA. Frankly, looking at the above prices and living in the US myself, I cannot help but wish I lived in Japan with the fiber optic service at under what cable service costs here in the United States. None of the services in the US won the price war. tsk, tsk, tsk.

And my parting word to the cable service providers....look at the numbers, friends. You had better find a way to reduce the cost of services, and I am not just talking broadband internet either.

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