Hong Kong best for consumer broadband and Singapore moves into the top 10

November 29, 2010   |   Oliver Johnson

Hong Kong has best broadband value on earth

Hong Kong is confirmed as the best value on earth for consumer broadband – while Singapore joins the top ten nations worldwide for the first time – in analysis revealed today by Point Topic as part of its Broadband Tariff Benchmarks – Q3 2010.

The data, which is collected on a quarterly basis by industry leading analysts at Point Topic, showcases the best deals on offer to consumers around the world.

 “Consumers in different countries are faced with very different broadband tariffs, dependent on geography, market and network maturity, local competition and various levels and sources of subsidy,” says Fiona Vanier, Senior Analyst at Point Topic.

In the standalone tariffs that Point Topic tracks, bandwidth can vary from 150kbps – barely qualifying as broadband – up to 1Gbps.  Many come with data limits, email addresses or static IPs and that is before the ‘special offers’ are accounted for.  To help comparison, Point Topic has analysed the amount a consumer will pay for a megabit of bandwidth.

For this analysis Point Topic has calculated the total cost for the first year of a broadband subscription*.

Global broadband tariffs - price per megabit of bandwidth - top ten countries Q3 2010

Figure 1: Top 10 countries for consumer broadband – cost per megabit of bandwidth Q3 2010 (US$/Mbit, PPP rates)

 

“Nine of the ten best value tariffs are either pure fibre or hybrid offerings where fibre is a significant part of the local loop. The exception is Germany where Unity Media offer a cable service that is very competitive,” says Vanier.

Rankings can change very quickly.  If a particular operator upgrades its network or decides to introduce a new tariff, it can result in a significant improvement in the cost on offer to the consumer.

Figure 2:  Largest quarterly percentage reductions in price per megabit –

Q2 to Q3 2010 (PPP rates)

 “Prices are stabalising in many markets around the world and overall in the last quarter there was an average increase globally.  However there are plenty of countries that are still rolling out new networks and ISPs that are announcing new tariffs,” added Vanier.

“Even in relatively mature markets, like Singapore or Italy, there is room for improvement as the new tariffs from StarHub and Fastweb demonstrate.”

Faster downstream speeds do usually mean a lower price per megabit but the bandwidth has to be used for those savings to be achieved.

“Bandwidth will continue to increase as fibre edges closer to the consumer.  Higher speeds generally mean better value for the consumer.  All that remains is to work out how best to use it,” concludes Vanier.

 

* The first year of a broadband subscription includes a number of costs.  In addition to the monthly rental a consumer can pay for the installation, the activation and the cost of the equipment.  Adding these together and converting to a common base using purchasing power parity (PPP) exchange rates from the United Nations** and then calculating the amount per megabit of bandwidth produces a listing from which the lowest cost per megabit for a generally available, standalone (broadband only) tariff in each country is selected.  70 countries provided enough data to qualify for this analysis.

 

**  PPP rates from the UN as at 2008.

 

Table 1: Lowest cost/megabit by country, operator and tariff – the top 10 (PPP rates)


Country, ISP and tariff
$/Mb
Hong Kong, HKBN, (bb Fibre Home 1000) 0.028
Japan, KDDI, (FTTH AU-Hikari Mansion Giga) 0.048
Romania, Romtelecom, (Clicknet Power) 0.163
Sweden, Riksnet, (Riksnet Broadband 100) 0.182
Latvia, Lattelecom, (Fibre Internet 4) 0.241
China, China Tietong, (J3 Shared 100M VDSL Unlimited)*** 0.247
Singapore, StarHub Cable Vision, (MaxInfinity Supreme) 0.271
Russia, Beeline (VimpelCom), (High Speed 22G)** 0.353
Germany, UnityMedia, (1play Internet) 0.415
Finland, Elisa, (Laajakaista Super 100M/10M) 0.443

 

Table 2: Lowest cost/megabit by country, operator and tariff – the bottom 10 (PPP rates)

Peru, Telefonica del Peru, Speedy 500

209.29

South Africa, Sainet, Consumer Uncapped

176.92

Kenya, Telkom Kenya, Broadband Nyumbani 1 Mbps

145.38

Indonesia, PT Telkom, Speedy Home 384 Kbps Limited 3GB

104.08

Bolivia, COSETT, ADSL Exclusivo 256K

90.72

Belarus, Beltelecom, Super Home

79.76

Venezuela, Cantv, ABA 1024

63.24

Algeria, Algerie Telecom, ADSL 1 Mbps unlimited

54.74

Turkey, Turk Telekom, Nete Davet

46.18

Kuwait, Qualitynet, Light Surf Unlimited

39.83

Table 3:  Largest quarterly percentage reductions in price per megabit – Q2 to Q3 2010 (PPP rates)

Country

% drop in best available

consumer tariff (q2 to q3)

Saudi Arabia

-93%

India

-84%

Turkey

-71%

Singapore

-70%

Kuwait

-65%

Bulgaria

-65%

Italy

-64%

Thailand

-52%

Pakistan

-49%

Norway

-43%


About Point Topic

Point Topic is the primary websource for DSL, FTTx, cable and other broadband supplier and user statistics, databases, information and reports. Its data is in use worldwide amongst governments, commercial organisations and as general reference.  A range of online services provides the most up-to-date, accurate and cost effective worldwide and UK specific broadband data sets available.

For media information please contact Proactive PR Account Manager Liz Dolby at liz.dolby@proactive-pr.com or on +44 1636 812152 (office) or +44 7966 477441 (mobile).

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