Global broadband tariffs – Q4 2013 – an update

A review of standalone and bundled broadband tariffs

The tariff data for Q4 2014 has come at a time when discussions in the US around price and bandwidth and international comparisons are ongoing.

While we normally preserve the more in depth data and analysis for our subscribers, and you can see what we provide in which services on our site, we have decided in the interests of clarity to provide an update on the charts and data already published.

It is important to note that all prices are quoted in international US$ at Purchasing Power Parity (PPP) rates to facilitate international comparisons.

Standalone and bundles

If you want to make more detailed international comparisons it makes sense to break out the standalone and bundled packages.  So first we examine the average price and bandwidth available for the split between those options.

We’ve picked out the US and the UK as well to allow some more direct comparisons.

Figure 1: Standalone services

Average price and bandwidth standalone

Average price and bandwidth standalone

 

Figure 2: Bundle services

Residential bundles

Average cost and bandwidth for bundle residential bundles

 

So the US doesn’t do any better when we split out standalone and bundle offerings.  Next we can look at the technologies.

Figure 3: Standalone services – cost per megabit by technology

Technology cost and standalone

Figure 4: Bunde services – cost per megabit by technology

Technology costs and bundles

Once again we can see costs in the US are still relatively high.  The bundle representation needs to be viewed in light of the contents of each bundle for complete satisfaction and Point Topic’s subscribers can access the details of particular tariffs in our Broadband Operators and Tariffs service.

That said many bundles are comparable with premium sports channels and movies often included.  Ultimately it’s subjective if one bundle is comparable to another however.

What it really comes down to is what the market will bear.  The cost of bundles in the US reflects the consumers willingness to pay for a particular combination of content and service and has been built up over time.  Other markets are less conditioned to paying such a proportion of consumer income on video content in particular.

Another factor is competition, particularly at the service level.  Many national networks outside the US carry multiple service providers so even if there’s only one physical network going past your door you will still be able to access services from multiple ISPs.  This drives the price down for all networks.  For example in Europe most of the cable networks are closed but the fact that they face competition from the existing copper and hybrid copper/fibre networks, as well as the smaller end to end fibre providers, means they have to pay attention to their competition.  Something that is perhaps lacking in the US.

Finally we can represent the average tariffs by country for standalone with bundle data attached.

Figure 5:  Average cost at PPP rates of a monthly subscription for standalone (bundles data included)

Find out more

This report uses data from Point Topic’s Broadband Operators & Tariffs service. Subscribers can access the full database which features 5,200 tariffs from operators in 91 countries.

Please telephone +44 (0)20 3301 3303 or e-mail oliver.johnson@point-topic.com for more details.