As average bandwidth increases, businesses’ fixed broadband charges increase

In the 12 months to the end of the second quarter of 2022, business fixed broadband customers continue to struggle with rising monthly charges, with average monthly charges increasing by 12% and average downstream speeds standing at 426 Mbps compared to a residential tariff average of 464 Mbps, according to the latest Global Broadband Tariff Benchmark Report Point off topic.

In contrast, the report found global residential fixed-line broadband customers saw average monthly charges drop by 4% on copper, cable and fibre-based tariffs, while average bandwidth across all three technologies increased by 22% year-on-year. For increased innovation and deployment of fiber-based networks.

Among other major trends revealed in the report were the charges for Residential fiber-based products The downstream average increased 17% to 549 Mbps, down 5%; Cable-based product prices fell 4% year over year, average bandwidth speeds increased to 433 Mbps; And copper-based tariff charges remained steady but average speeds declined from 13 to 11 Mbps over the year. Gigabit-capable tariffs continue to grow, with 456 residential gigabit tariffs (with at least 900 Mbps downstream bandwidth) available in Q2, compared to 397 in Q4 2021 and 367 in Q2 2021.

Meanwhile, monthly charges for fiber-enabled business products remained steady at $241 PPP per year, while average speeds increased 17% to 515 Mbps; Cable service charges fell 14% but increased bandwidth averaged 377 Mbps; And copper prices have dropped but so have average downlink speeds, with the average cost per Mbps coming in at $13.00 PPP.

Research into business arena trends found that while the average bandwidth of fiber-based broadband products has been called “significant,” the overall average monthly cost of a fiber connection has remained steady year over year. – year This has been attributed to the widespread availability of fiber-based products that provide greater bandwidth at equal cost in the business broadband sector.

Point Topic predicts that this trend will continue in the coming months, as operators become more competitive in pricing products to remain attractive to B2C and B2B customers. However, it warns that the B2B sector remains challenging for some European operators, where it claims some customer losses are due to the impact of the Covid-19 pandemic, the war in Ukraine and overall inflationary price increases that are putting pressure on retention levels. .

In Q2 2022, the combined average download bandwidth increased by 20% compared to Q2 2021 and stood at 426 Mbps. The study found that this was due to average speed increases over cable, and specifically fiber, of 14% and 22%, respectively. Copper maintained essentially the same average download speed compared to the previous quarter. However, the overall global average monthly cost of the three technologies increased by only 12% from $217 PPP to $244 PPP.

In terms of region, the Asia-Pacific region retained its dominant bandwidth position with an average speed of 1.146 Gbps, up from 1.355 Gbps in Q4 2021 and 1,135 Mbps year-on-year, followed by North America, Western Europe and Southeast Asia. The combined average of the three regions reached around 465 Mbps. Qatar, Switzerland and Southeast Asian countries still top the league in terms of average bandwidth, along with Italy, France and Bulgaria – all of which are in the top 10 cheapest for residential broadband at less than $0.10 per Mbps PPP.

Average business bandwidth in South and East Asia declined slightly overall to 229 Mbps in Q4 2022 from 238 Mbps in Q4 2021, but this is said to be comparable to total tariff numbers over the period.

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