Business broadband prices vary widely by geography

9 Oct 2014

Data from TeleGeography’s new Business Broadband Research Service reveal that business broadband prices vary widely, not just by country, but also within countries.

Western European markets are among the most competitive in the world. The median monthly price of a fixed broadband plan with between 10Mbps and 16Mbps of downstream bandwidth is USD47 in Germany, while comparable plans cost USD28 in Spain and USD34 in the Netherlands.

Business broadband service is also relatively inexpensive in many East Asian economies, such as Taiwan, where the median price of 10-16Mbps service is USD37 per month; Japan, where it’s USD39 per month; and Vietnam, at USD29 per month. However, due to the diverse levels of broadband infrastructure availability and competition in the region, prices can be far higher in other countries. In Malaysia for example, the median price of a 10-16Mbps plan is USD140 per month. Business broadband service can be particularly expensive in Africa, where 10-16Mbps median prices are USD93 in South Africa, USD161 in Nigeria, and USD352 in Kenya.

Broadband prices can also vary widely within countries. In Chile, where the median price of a 10-16Mbps plan is USD41 per month, the highest price is two times the lowest price. In the United States, where the median price is USD90 per month, the high price is seven times the low. Similarly, the high price in Germany is three times the low price, while the high price in South Africa is an astonishing 24 times the low.

Business broadband services are priced for the local market. ‘Price differences between countries reflect competition, geography, population density, and the local cost of wholesale IP transit,’ said TeleGeography analyst Rob Schult. ‘Price differences within countries reflect similar characteristics, with the greatest differences coming between urban and rural markets. For a single geography and downstream speed, product features such as upstream bandwidth, multiple static IP addresses, data limits, and domain hosting have the greatest impact on price.’

TeleGeography’s new Business Broadband Research Service is an extensive database of more than 700 broadband service providers and the Internet service packages they offer to business subscribers in over 100 countries.

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