Over 15 months, from Q4 2009 to Q1 2011, the cost per downstream megabit for DSL, cable and fiber access declined across all regions. A 40 percent price drop was seen across Latin America (where access costs have been relatively high), followed closely by North America, at 35 percent.
The drop in cost was most dramatic for fiber access, and fiber has by far the lowest cost per megabit of any technology.

Vanier says consumers want more for their money, and suppliers must compete with other technologies as well as other companies. She explains, “This isn’t about significant reductions in the monthly subscription, but about increases in the headline speed on offer.”

As fiber continues to pass more homes, Vanier says, there will be no letup in the pressure for ISPs to offer better bandwidth for the money. “It will prove increasingly difficult to differentiate yourself as a broadband supplier based just on higher and higher headline bandwidths," Vanier says. "The mature broadband markets, in particular, are entering a phase where value-added services and customer relationships will be more and more important. The downside is that consumers could be seeing the end of significant increases in bandwidth or reductions in tariffs.”
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