Study: Fiber now less expensive broadband than cable

FTTx will overtake cable modem to become one of the main players in high-speed broadband services

A significant price reduction for Fiber to exchange services worldwide has taken the average cost of broadband over fiber below that of cable in the last quarter, according to Point Topic Research.

FTTx tariffs decreased 12 percent to US$28.10, 3 percent lower than the average monthly price for cable modem services, Point Topic states. If the decline continues, it is likely that FTTx will overtake cable modem to become one of the main players in high-speed broadband services, Point Topic says.

Compared with the second quarter of 2006, the general downward trend of broadband service pricing for DSL and cable modem service slowed down slightly.

The average monthly price for DSL and cable modem services dropped by 2.5 percent and 2.1 percent, respectively, Point Topic notes.With such a small drop over the quarter, cable modem is losing its price competitiveness, the firm asserts.The average DSL monthly price is now under US$25, US$4.50 less than the average for cable, Point Topic says.

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