In this section, we look at the average monthly tariff for residential broadband services across the world. The average tariffs include copper, cable and fibre broadband services, and cover both standalone and bundled services.
All tariffs are quoted in international US dollars at PPP rates to allow comparisons between countries.
We are using the three most common comparison aggregations:
There is a difference in the relative country performance depending on which metric is used and the variation can be significant.
Here we show the price and country ranking for the metrics explained above for residential services. All prices expressed as international US$ (PPP rates).
The above chart shows the range from the entry level service through the median up to the average value of all the residential tariffs in the market. This highlights some of the issues we have outlined above.
The spreads in Japan, Germany, France, Russia and South Korea seem to indicate that it is relatively straightforward to get more bandwidth, at least in terms of cost, even though this may indicate that consumers on entry level tariffs are subsidising those on higher level tariffs. In Brazil, India, Turkey, China and the United States the differences in price levels of various packages are much more pronounced, not least due to the variation of supply between urban and rural areas.
Looking at the most expensive markets in terms of median tariffs we also see some variation in the entry level and average ones. Upgrading to higher level tariffs is especially expensive in Qatar, UAE and Bahrain, though the differences are pronounced in most of the ten markets. This is particularly symptomatic of the African and Middle Eastern countries where the competition is low and mobile broadband is the technology of choice for accessing the internet.
Ranking countries using the average cost of broadband subscriptions is a straightforward idea but the variation in entry level versus median and average costs can be significant. To help provide an easy way of comparing directly we have taken the PPP data on the entry level, median and average tariffs, produced rankings and then compared the variance.
We have included a ‘variance’ column to indicate how different ranks for the different metrics are spread. So we see that the wide spread in China, India and United States in the chart above (big differences in entry level, average and median tariffs) is represented by high variance. At the other end of the variance scale countries like Romania, Japan and Finland rank rather consistently.
However, it should be noted that this is only one set of metrics measuring one aspect of the broadband markets so conclusions should not be drawn in isolation.
Access to the full version of 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 as well as Double Play and Triple Play services. To find out more, please telephone +44 (0)20 3301 3303 or e-mail firstname.lastname@example.org.