Broadband prices ticking up?

The average entry level prices for DSL, cable and FTTx subscriptions have increased slightly during the last quarter of 2007 according to the latest data from Point Topic.

Most significantly, the average price for cable services increased from $27.21 to $27.43. This increase is due to the activity of the Australian-based operator OptusNet Cable.

“OptusNet Cable recently rebranded some of their broadband offerings. As a consequence, the price of one of the operator’s services called ‘Yes’ My Home Starter increased by 16.8% from $21.55 to $25.17”, says Fiona Vanier, Research Analyst at Point Topic.

OptusNet Cable has become the sixth the most expensive cable operator worldwide.

The increase in the DSL entry level prices from $24.43 to $24.54 on average was mainly influenced by the pricing policy of Telekom Austria. The company raised the price of one of its services, AonSpeed Start, by 30% from $23.19 to $30.16 and increased the downstream speed of this service from 500 kbps to 1 Mbps.

By the end of the year the Austrian operator offered the fourth most expensive entry level prices for DSL access after Western European incumbents Telefonica, Deutsche Telekom and Belgacom and just ahead of UK-based BT.

The average entry level prices for the FFTx services increased due to the changes made by only one operator, Swedish-based Svenska Bostader. It made a slight adjustment to its entry level service in the end of 2007 from $30.64 to $30.75. This raised the global average price from $29.09 to $29.10.

The operator is still the fourth the most expensive FTTx operator, while the US Verizon with its service priced at $39.99 was still on the top of the ranking in the last quarter of 2007.

“We think that the increases in average prices are significant, but we’re not yet ready to call it a trend,” says Vanier, “however without external factors coming in to play it’s difficult to see room for further price cuts in the next 2 to 3 quarters,” she concludes.