Bandwidth prices cut by half since 2008

According to one broadband analysis group the increased competition in the broadband market is proving good for consumers, as it has resulted in the cost of bandwidth now falling below the cost seen in 2008.

The competition in the broadband market has become fiercer over recent years, and according to one broadband analysis group this is great news for consumers that want to get a good deal. Officials from Point Topic have said that the cost of bandwidth has now fallen below the levels seen in 2008 as a result of this competition and the availability of high speed fibre based broadband.

Oliver Johnson, chief executive at Point Topic, said: “DSL prices in particular are being squeezed. Competition between operators and access technologies is driving the search for more markets, and DSL is well placed to capture customers who don’t need full-speed 24/7 bandwidth.”

He added: “Many people do not use their broadband for more than a couple of hours a day, and when they do it’s often for applications that use relatively little bandwidth. They care much less about the cost per megabit, where fibre has the edge, than about the upfront and monthly charges, and DSL wins that battle hands down. ”

He also said that having fibre based broadband in new buildings has become increasingly common, stating: “Fibre-to-the-building is a popular way of providing broadband. An increasingly common model in many markets is for a block of flats to get a fibre connection, and to have the bandwidth delivered over a LAN to the individual units.”

Source – V3