DECEMBER 7, 2006 -- A significant price reduction for FTTx services worldwide has taken the average cost of broadband over fiber below that of cable in the last quarter, reveals a new report on global broadband tariff benchmarks from Point Topic.
According to the report, FTTx tariffs went down 12% to $28.10, 3% lower than the average monthly rental for cable modem services.
"Consumers' preference for DSL and cable modem services remains very strong, but FTTx is certainly catching up, thanks in part to this price cut," reports Vince Chook, analyst at Point Topic. "If the decline continues, it is very likely that FTTx will overtake cable modem to [become] one of the main players in high-speed broadband services in the future."
Compared to 2Q 2006, the general downward trend of broadband service pricing for DSL and cable modem service slowed down slightly, says the report. The average monthly rentals for DSL and cable modem services only dropped by a mere 2.5% and 2.1% respectively.
"DSL rentals had been undergoing major price reductions since the beginning of 2006," Chook notes. "But with such a small drop over the quarter, cable modem is certainly losing its price competitiveness," he adds.
The average DSL monthly rental is now under $25 at PPP (purchasing power parity) rate -- $4.50 less than the average for cable.
For more information about the report, visit UK-based Point Topic Ltd. at www.point-topic.com.