Broadband users get more speed for the money

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Broadband users get more speed for the money

Service speeds continue to rise, with increases embedded in existing offers, but expect more innovative pricing, too

Strategy Analytics, Boston, MA - October 31, 2013 - The most recent fixed broadband price benchmarking results from Strategy Analytics shows that while ISPs are ramping up service speeds, a number of them are embedding this speed increase into existing service offerings, so that many users will benefit from a higher speed service with no or little change to prices

This is good news for consumers, who are experiencing much more static prices and can expect to pay on average between USD PPP 29 and USD PPP 67 per month for broadband and related services – namely basic phone and television bundles.

Teligen Director Halvor Sannaes comments: “There is a limit to how much ISPs can compete on price, and the relatively slow shifts in average pricing suggest we are close to that limit. What providers seem to be looking more to now is how they can add value to maintain competitive advantage. Certainly we are seeing more providers increasing speeds within given packages, but not changing the price. This is a reflection of network upgrades, of course, but it is something that the end user is clearly benefitting from for no additional outlay“

Senior Tariff Consultant, Josie Sephton added: “There is definitely room for more innovation in broadband pricing, and not just through bundling of fixed offers, but also through extending the offer to include add-ons such as mobile broadband, as well as using approaches such as time-based charging and Wi-Fi access when away from home, and this is something we anticipate seeing more of in the future”.

The OECD Fixed Broadband Price Benchmarking service is provided by the Teligen division of Strategy Analytics, and offers an on-going insight into the price developments and relationships for fixed broadband services in the OECD countries, plus a selected number of non-OECD countries.

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