OECD report reveals global broadband prices

July 17, 2007 – A recent report by the Organisation for Economic Co-operation and Development (OECD) has revealed wide-ranging differences in broadband prices and speeds across 30 of the world’s most developed nations.

The OECD report states that 60% of Internet users in its 30 member countries surveyed now use broadband, although countries that have adopted fibre networks offer the best speeds and lowest prices.  Japan recorded amongst the fastest connections, offering consumers 100Mbps lines, 10 times faster than the OECD average, as well as the cheapest prices per megabit per second - $0.22.  Subscribers to Japan’s networks can also upload at the same speed as download, as they are not limited to Asymmetric Digital Subscriber Line (ADSL) technology.

The most expensive price per megabit per second out of the countries surveyed was Turkey at $81.13 per megabit per second, whilst US prices start at $3.18 per megabit per second, and the UK offers connections starting at $3.62.  Sweden, Korea and Finland have all switched to fibre networks and offer 100Mbps connections.

According to the report, broadband prices for DSL connections across the 30 countries have reduced by 19%, while speed has increased by 29% between October 2005 and the same month of 2006.  JupiterResearch analyst Ian Fogg commented that entry prices for broadband is an extremely important criteria in such a survey: “Because the market is very fragmented people care about cheap prices.  In many OECD countries those people without broadband and making the transition are feeling their way and are very conscious of price.”

Figures mentioned were for October 2006.