Fixed and Wireless Broadband Tariffs Analysis Q2 2014

According to Quantum-Web’s Q2 2014 World Broadband Tariffs Analysis, the gap between fixed and wireless broadband prices is still wide. The global average prices of fixed broadband and wireless broadband are €2.30 and €8.58 per Gigabyte respectively.

The price gap between fixed and wireless broadband in Africa is much wider compare to other regions.

The analysis reveals that the average price per Gigabyte expressed in Euro of stand-alone fixed broadband in Africa is €3.41 while that of wireless broadband is the highest (€12.41) compare to the average of other regions (Figure 1).

 

Figure 1- Average fixed and wireless broadband prices, Q2 2014 (€)
WirelessFixed Analysis

The Europe and Central Asia with €4.87 per Gigabyte has the lowest wireless broadband prices thanks to a stiff competition among wireless operators, transparency of prices and solidified control of national telecoms regulators (Table 1).

Table 1- Average fixed and wireless broadband prices, Q2 2014 (€)

WirelessFixed Analysis1

The analysis further reveals that the cost of fixed broadband per Gigabyte is more harmonised across different regions. The average price per Gigabyte is similar in Europe & Central Asia, Asia Pacific and the Africa region. The Average price per Gigabyte is much lower within the European Union, Middle East and the North and Latin America region.

The North and Latin America region has recorded the lowest average price of fixed broadband in Q2 2014 with €0.98 per Gigabyte.

According to the analysis, it appears that the operators in this region set their fixed broadband price structure through trial and error based on the demand for bandwidth and in line with the retail price of giant regional operators such as Claro, Telefonica and Tigo.  The operators’ pricing strategy implies the lower entry level prices for most users to ensure affordability of broadband services for the population.

 

The analysis also includes detailed information for both wireless and wireline broadband tariffs of 541 major operators in 138 countries.

The tariffs are analysed according to the following parameters:
• Download and upload speed
• Recurring and non recurring costs
• Throttling or overage details
• Type of device
• Bundling characteristics

There is a comparison of broadband pricing strategies for each operator in the tariffs monitoring service on the basis of the following perspectives:
• Fixed broadband tariffs by speed
• Fixed broadband tariffs analysis by access technology
• Fixed broadband tariffs analysis for stand-alone vs. bundled services
• Wireless broadband tariffs analysis of 2G, 3G and 4G
• Wireless broadband tariffs analysis of 2G, 3G and 4G cost per GB