Broadband prices swooning


It might not seem so but apparently the prices of Broadband, especially DSL are swooning world wide, according to data collected by Point Topic, a research firm. This should be good news, because the number of DSL subscribers is going to rise sharply, up to about 60 million lines the firm predicts In a press release, the research group notes:

bq. The two biggest US telcos, Verizon and SBC, have made particularly big cuts, of 40% or more from their prices a year ago. Price cuts have been the key to rapid growth in broadband users in the past. In Germany and Japan, for example, DSL numbers leapt in response to lower prices in 2002. But Deutsche Telekom has now had to raise its charges again, because of complaints that its prices were anti-competitive.The price cuts are not restricted to North America. Of the 14 major telcos compared by Point Topic, only one, Deutsche Telekom, increased DSL rentals in the last 12 months. The USA came late to the game but it has seen some of the sharpest price reductions. Some operators are holding tariffs more or less level but they tend to be ones which started with relatively low prices in the first place, such as Chughwa and Belgacom.

Here are some other key findings:

* Total DSL lines reached 53m at end-September 2003, a 73% increase since September 2002.
* This keeps the DSL market on track to reach over 60m lines by the year end.
* Taken together with the growth of cable modems and other broadband services this means that over 30% of the world’s Internet access lines are now over broadband.

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