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Long term trends in broadband pricing: 2000-2005

Management Summary

This report is a new feature that builds upon the analysis of Point Topic's Broadband Tariff Benchmarks series. It provides an overview of the key trends in DSL and cable modem tariff benchmarks for 18 leading DSL and 16 cable modem operators around the world.

The main body of the report analyses fluctuations in DSL prices since March 2000, cable modem prices since June 2003 and makes comparisons between both technologies where possible. Key highlights of this report include -

'DSL prices fall by 30% since March 2000'

DSL 'entry level' monthly rental prices registered an average 30% fall since March 2000, based on a review of monthly rentals offered by a leading set of 18 DSL operators.

'Cable modem prices falling faster than DSL since June 2003'

Monthly rentals for 'entry level' cable modem services fell on average by 21% between June 2003 and March 2005, compared to a modest 12% fall for DSL operators for the same period.

'Europe becoming cheaper than North America in PPP terms'

A Purchasing Power Parity (PPP) analysis shows that Europe is becoming cheaper both for DSL and cable modem services than North America, with the Asia Pacific region the cheapest for DSL.

Figure 1: Average broadband 'entry level' service: monthly rentals (USD at PPP rates)

Point Topic compared 'entry level' monthly rental prices for DSL operators between March 2000 and March 2005. Monthly rental prices for cable modem operators were also compared, but for a shorter period, from June 2003 to March 2005.

Using these comparisons Point Topic created a 'Broadband price index', Purchasing Power Parity (PPP) tables, and USD equivalent monthly rental charts for all monthly rentals.

DSL prices fall by 30% since March 2000

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