Global broadband prices fell sharply in the first half
of the year as cable operators moved to meet the challenge of lower
prices from Digital Subscriber Line (DSL) services, according to a
latest report.
Monthly rental fees for broadband cable services dropped 16% in
the first six months of this year, while DSL fees were slashed by
13%, said UK researcher Point Topic.
"DSL has been getting more users and cable modem providers are
trying to compete and get back share," said Haroon Butt, senior
analyst at Point Topic.
Broadband cable service providers engaged in aggressive price
cuts during the first half of the year to bring their fees closer
in line with those of DSL services, which had been previously
reduced to attract new subscribers, Butt said.
Cable operators surveyed said that the average monthly rental
rate for entry-level cable modem services declined from $39.20
(£21.40) to $32.00 over the period, a reduction of $7.20, while DSL
prices dropped by $2.50 to $29.50 in the first half of the
year.
These figures reflected average global pricing at purchasing
power parity (PPP) exchange rates, Point Topic said.
Only one provider, Yahoo Japan, increased its prices for DSL by
20%, Point Topic said. However, the researcher noted Yahoo Japan
remains the cheapest DSL provider in the world at PPP rates.
Price cuts primarily occurred in Asia and North America but
European operators have recently jumped on the price-slash
bandwagon.
Butt indicated that cable modem operators have more than price
cuts in their arsenal.
"It's not just about pricing - it's also about services," he
said. "They have a triple play. They can offer cable, internet and
voice."
It will be interesting to see how the cable modem and DSL
providers square off at the end of the third-quarter, Butt said, as
the war between them becomes increasingly focused on services.
Scarlet Pruitt writes for IDG News Service