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ACCORDING TO A NEW analysis by Point Topic, called Broadband Tariff Benchmarks, broadband prices have fallen sharply in the first half of 2004 for both DSL and cable services.
While cable modem operators have cut their monthly rentals at an average of 16%, DSL operators reduced them by 13%. According to the survey, almost all DSL operators surveyed held or reduced prices, while the cable market reduced price widely across the America, Asia Pacific and EMEA markets.
Apparently, cable monthly rentals have almost caught up with the average monthly rentals of DSL providers. The "purchasing power parity" or PPP exchange rates fell from $39.2 to $32.0 for cable operators, but fell only $2.5 for DSL, leaving them at $29.5.
Haroon Butt , a senior analyst from Point Topic, said there will be a "period of increased competition" between DSL and cable companies, and we can expect "aggressive pricing strategies.
Source:
The INQ!
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