In Q4 2016, the average monthly charge for residential broadband services was $98, down slightly from $100 in Q3 2016. This trend of decreasing average monthly cost has continued for several quarters.
At the same time, the average bandwidth provided to residential subscribers continued to climb and was 118Mbps, compared to 112Mbps in Q3 2016. The increase in the average bandwidth was due to a jump in the average speeds provided over cable connections (+16% 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.
(For more details on the next generation network upgrades see operator profiles which are part of our Broadband Operators and Tariffs service).
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.
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 419Mbps compared to 328Mbps in the previous quarter (+28%), and it continued to offer the best value for money to residential customers in terms of the average monthly tariff. Western Europe followed as it pushed VDSL and, since recently, G.fast. The region saw its average bandwidth drop slightly from 168Mbps in Q3 2016 to 161Mbps in Q2 2016, but it continued to be the second cheapest in terms of average monthly broadband tariff.
North America was third by average bandwidth which stood at 143Mbps in Q4 2016, up from 122Mbps in Q3 2016 (+17%) as Canadian and US operators upgraded their speeds. Countries of 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.
Access to the full version of the this report and our latest tariff database featuring more than 5,000 services from over 90 countries are available to subscribers of Point Topic’s Broadband Operators & Tariffs service. To find out more, please telephone +44 (0)20 3301 3303 or e-mail firstname.lastname@example.org.