Global Broadband Costs Decreasing

  • Point Topic
LONDON — In Q4 2016, the average global monthly charge for residential broadband services was $98, down slightly from $100 in Q3 2016, according to Point Topic, a provider of broadband market intelligence. This trend of decreasing average monthly cost has continued for several quarters.

Global Broadband Tariffs and Bandwidths
At the same time, the average bandwidth provided to residential subscribers continued to climb and was 118 Mbps, compared to 112 Mbps in Q3 2016. The increase in the average bandwidth was due to a jump in the average speeds provided over cable connections (+16 percent over Q3 2016). This trend will continue, with a significant number of operators accelerating the rollout of Docsis 3.1 networks capable of gigabit speeds.

The drop in the average monthly cost pushed down the average price per megabit further. The average global cost per Mbps was $0.83 at the end of Q4 2016, compared to $0.89 recorded at the end of Q3 2016.

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Residential Broadband Costs and Bandwidths by Region
Asia-Pacific has further boosted its dominant position in terms of bandwidth as the operators in the region continue to push FTTH and FTTx services. In Q4 2016, the average bandwidth in this region jumped to 419 Mbps compared to 328 Mbps in the previous quarter (+28 percent), and it continued to offer the best value for money to residential customers in terms of the average monthly cost. Western Europe followed as it pushed VDSL and, since recently, G.fast. The region saw its average bandwidth drop slightly from 168 Mbps in Q3 2016 to 161 Mbps in Q2 2016, but it continued to be the second cheapest in terms of average monthly broadband cost.

North America was third by average bandwidth which stood at 143 Mbps in Q4 2016, up from 122 Mbps in Q3 2016 (+17 percent) as Canadian and U.S. operators upgraded their speeds. Countries of the Middle East and Africa continued to be the most expensive broadband markets, not least due to low saturation and fixed broadband being overshadowed by mobile.

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