Bundled DSL services cheaper than standalone broadband, says Point Topic

August 12, 2008 - Bundled DSL services across the world were offered at lower prices than a standalone broadband connection in the second quarter of this year, according to research firm Point Topic.

This is claimed to be especially true in Western Europe, where broadband with fixed telephony and broadband with VoIP packages are described as becoming "extremely competitive" in terms of pricing. The average price of a double-play package with VoIP in Western Europe was found to be US$47.83 per month, down nearly 30% quarter-on-quarter, while the average standalone tariff for a broadband service alone was found to be US$56.45. The average cost of a double-play service with IPTV in Europe was up by almost 20% quarter-on-quarter to reach US$72.73.

The trend is described as being repeated elsewhere in the world too: “For example Indian based ISP Bharti Telecom’s tariffs, in conjunction with others in the region, mean that bundles in South and East Asia are 43% cheaper than standalone,” said Fiona Vanier, Senior Analyst at Point Topic.

Double-play services in the Middle East and Africa cost on average US$71.25 in the second quarter of this year, second in regional ranking after Latin America, but still less than the average standalone tariff for the region. In Asia Pacific the average cost of a double-play service with VoIP was US$28.73 in the second quarter of this year, while the average cost of double-play services with fixed-line telephony was US$41.08.

“Ultimately ISPs want customers, and they want customers who generate revenue, in particular they want growth in revenue. To achieve this they are going to have to hook into all aspects of communication and data transfer, whether it’s voice, video or plain bits,” continued Vanier.

Eastern Europe was found to have the cheapest average triple-play service, down 13% from US$65.63 in the first quarter of this year to US$57.03 in the following quarter. The average price of a double-play service with IPTV in Eastern Europe was found to be US$32.04 in the second quarter of this year, compared to US$42.32 for a standalone broadband service.