Asia-Pacific maintains its lead in providing the best broadband bargains to be found worldwide. The latest ITU research comparing international prices for broadband access confirms that the three cheapest broadband economies are in Asia, with Japan still the cheapest at just 7 U.S. cents per 100 kbit/s followed by Korea. Both Japan and Korea offer the highest speeds for the cheapest prices per 100 kbit/s.
Prices among the cheapest fifteen broadband economies continued to fall and nearly halved, falling by 46.6 per cent from 2004-2005. Other countries are following Asia’s lead in bargain-value pricing. In 2004, just five economies offered broadband access under 1 USD per 100 kbit/s (which included four from Asia). In 2005, eleven economies offered cut-price access, including six from Europe. The good news for operators is that such pricing strategies seem to build market share. Eleven of the fifteen cheapest economies also rank in the fifteen economies with the highest broadband penetration. This implies that operators are successfully winning customers through cheaper pricing plans. Whether strong market shares can be translated into profit is another question, however. Bargain-value pricing builds subscriber bases at the expense of profit margins, which are likely to be eroded.
Source: ITU research, based on data available in the Statistical Annex to ITU Internet Report 2005: The Internet of Things, November 2005.