Fibre broadband now cheaper than cable

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Fibre broadband now cheaper than cable

Price reduction for FTTx services makes fibre more attractive.

The average delivery cost of running broadband over fibre has become cheaper than routing over cable, according to research published today.

The research by Point Topic on global broadband tariff benchmarks, using data to 30 September 2006, found that Fibre to the Exchange (FTTx) tariffs fell 12 percent to US$28.1. The report noted that this pricing made fibre 3 percent cheaper than the average monthly rental for cable modem services.

"Consumers' preference for DSL and cable modem services remains very strong, but FTTx is certainly catching up, thanks in part to this price cut", said Vince Chook, analyst at Point Topic.

"If the decline continues, it is very likely that FTTx will overtake cable modem to one of the main players in high-speed broadband services in the future."

As compared to Q2 2006, the general downward trend of broadband service pricing for DSL and cable modem service was, according to Point Topic, found to have slowed down slightly. The average monthly rentals for DSL and cable modem services only dropped by a mere 2.5 and 2.1 percent respectively.

"DSL rentals had been undergoing major price reductions since the beginning of 2006", said Chook.

"But with such a small drop over the quarter, cable modem is certainly losing its price competitiveness."

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