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Hong Kong best for consumer broadband and Singapore moves into the top 10

globaltelconews-admin by globaltelconews-admin
29 November, 2010
in English
0

Hong Kong is confirmed as the best value on earth for consumer broadband, while Singapore joins the top ten nations worldwide for the first time in analysis revealed today by Point Topic as part of its Broadband Tariff Benchmarks Q3 2010.

The data, which is collected on a quarterly basis by industry leading analysts at Point Topic, showcases the best deals on offer to consumers around the world.

Consumers in different countries are faced with very different broadband tariffs, dependent on geography, market and network maturity, local competition and various levels and sources of subsidy, said Fiona Vanier, Senior Analyst at Point Topic.

In the standalone tariffs that Point Topic tracks, bandwidth can vary from 150kbps barely qualifying as broadband – up to 1Gbps. Many come with data limits, email addresses or static IPs and that is before the special offers are accounted for. To help comparison, Point Topic has analysed the amount a consumer will pay for a megabit of bandwidth.

For this analysis Point Topic has calculated the total cost for the first year of a broadband subscription*.

Nine of the ten best value tariffs are either pure fibre or hybrid offerings where fibre is a significant part of the local loop. The exception is Germany where Unity Media offer a cable service that is very competitive, said Vanier.

Rankings can change very quickly. If a particular operator upgrades its network or decides to introduce a new tariff, it can result in a significant improvement in the cost on offer to the consumer.

Prices are stabilising in many markets around the world and overall in the last quarter there was an average increase globally. However there are plenty of countries that are still rolling out new networks and ISPs that are announcing new tariffs, added Vanier.

Even in relatively mature markets, like Singapore or Italy, there is room for improvement as the new tariffs from StarHub and Fastweb demonstrate.

Faster downstream speeds do usually mean a lower price per megabit but the bandwidth has to be used for those savings to be achieved.

Bandwidth will continue to increase as fibre edges closer to the consumer. Higher speeds generally mean better value for the consumer. All that remains is to work out how best to use it, concluded Vanier.

Table 1: Lowest cost/megabit by country, operator and tariff the top 10 (PPP rates)

Country ISP and tariff $/Mb
Hong Kong HKBN, (bb Fibre Home 1000) 0.028
Japan KDDI, (FTTH AU-Hikari Mansion Giga) 0.048
Romania Romtelecom, (Clicknet Power) 0.163
Sweden Riksnet, (Riksnet Broadband 100) 0.182
Latvia Lattelecom, (Fibre Internet 4) 0.241
China China Tietong, (J3 Shared 100M VDSL Unlimited)*** 0.247
Singapore StarHub Cable Vision, (MaxInfinity Supreme) 0.271
Russia Beeline (VimpelCom), (High Speed 22G)** 0.353
Germany UnityMedia, (1play Internet) 0.415
Finland Elisa, (Laajakaista Super 100M/10M) 0.443

Table 2: Lowest cost/megabit by country, operator and tariff the bottom 10 (PPP rates)

Peru Telefonica del Peru, Speedy 500 209.29

South Africa
Sainet, Consumer Uncapped 176.92

Kenya
Telkom Kenya, Broadband Nyumbani 1 Mbps 145.38
Indonesia PT Telkom, Speedy Home 384 Kbps Limited 3GB 104.08
Bolivia COSETT, ADSL Exclusivo 256K 90.72
Belarus Beltelecom, Super Home 79.76
Venezuela Cantv, ABA 1024 63.24
Algeria Algerie Telecom, ADSL 1 Mbps unlimited 54.74
Turkey Turk Telekom, Nete Davet 46.18
Kuwait Qualitynet, Light Surf Unlimited 39.83

Table 3: Largest quarterly percentage reductions in price per megabit Q2 to Q3 2010 (PPP rates)

Country % drop
in best available
consumer tariff
(q2 to q3)
Saudi Arabia -93%
India -84%
Turkey -71%
Singapore -70%
Kuwait -65%
Bulgaria -65%
Italy -64%
Thailand -52%
Pakistan -49%
Norway -43%

* The first year of a broadband subscription includes a number of costs. In addition to the monthly rental a consumer can pay for the installation, the activation and the cost of the equipment. Adding these together and converting to a common base using purchasing power parity (PPP) exchange rates from the United Nations** and then calculating the amount per megabit of bandwidth produces a listing from which the lowest cost per megabit for a generally available, standalone (broadband only) tariff in each country is selected. 70 countries provided enough data to qualify for this analysis.

** PPP rates from the UN as at 2008.

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