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Business broadband tariffs – Q2 2016

Global business broadband tariffs

In Q2 2016, the average monthly charge for business broadband services was $197, down significantly from $210 in Q1 2016. In the same period, the average bandwidth provided by business services saw a boost to 81Mbps compared to 73Mbps in the previous quarter.

The changes in average monthly tariffs and bandwidth were notable in the case of all technologies. In terms of average cost, fibre based products became more expensive, while the average price of cable connections has dropped slightly as cable companies tried to fend off competition from other technologies by both offering better pricing and boosting the speeds on their networks. To justify the increased average cost, fibre broadband providers offered significantly higher average speeds – 133Mbps compared to 120Mbps in the previous quarter. Meanwhile the average monthly tariff of copper services plummeted from $171 to $149 quarter-on-quarter as this legacy technology kept losing customers.

business-average-cost-and-download-speeds

At the end of Q2 2016, the average global cost per megabit for business broadband packages was $2.45, down from $2.87 at the end of March 2016. Similarly to residential tariffs, all three technologies saw a decline in this indicator.

Regional business broadband tariffs and bandwidths

The lowest priced business tariffs are offered in Europe and the Americas. Meanwhile the Middle East and Africa has taken over from Asia-Pacific as the most expensive market for businesses. Although being the second most expensive market, Asia-Pacific offers the highest average speeds which further increased in Q2 2016 and stood at 289Mbps, compared to 265Mbps in Q1 2016.

 

Source: Point Topics

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