Point Topic’s latest analysis, Broadband Tariff Benchmarks, shows broadband prices fell sharply for both DSL and cable modem services in the first half of 2004.
Cable modem operators cut monthly rentals for services by an average of 16%, with DSL operators reducing them by 13% in the same period. Although almost all DSL operators surveyed either held or reduced prices, the cable modem market proved to be more dynamic with widespread price falls across Americas, Asia Pac and EMEA.
The cable operators surveyed have almost caught up with the average monthly rentals offered by DSL providers shown by the chart below. The overall average monthly rental (in US dollars) at purchasing power parity (PPP) exchange rates, fell by $7.2 from $39.2 to $32.0 for cable operators but only by $2.5 to $29.5 for DSL.
These price falls mark an important shift in the marketing strategies of cable modem operators as a whole, with the bigger price cuts in cable modems showing these operators are trying to recover ground from DSL that has pulled further ahead in terms of market share.
One operator however, Yahoo Japan, bucked the trend and actually increased it’s prices for entry level consumer broadband by 20%. In spite of this rise Yahoo Japan remains the cheapest DSL supplier in the world at PPP rates.
SOURCE: POINT TOPIC
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