If you live in the US, probably you haven’t noticed it. But fiber networks are growing in popularity, luring people with faster speeds, and now lower prices. PointTopic, the company that tracks the broadband markets says that fiber networks for consumer broadband access are now in fact cheaper than cable connections.
According to a PointTopic report, FTTx tariffs went down 12% to US$28.1, three percent than the average monthly rental for cable modem services. Average access price for a monthly DSL connection is about $25; while cable costs $29.50 a month. Fiber is now going for $28.10 a month.
Fiber is getting a lot of traction in the overseas market, and has higher visibility in Asia and Europe. In the US, Verizon FiOS is the most visible manifestation of the FTTx trend.
Now we might not care much for the Verizon Wireless phone UI, but we would switch to FiOS with all its issues in a heartbeat.
Especially if Verizon promised us a future bandwidth upgrade, and of course if we live in Verizon territory. And better pricing.
Currently, for a 30Mbps/5Mbps Verizon FiOS connection you pay $179.95 per month and for a 15Mbps/2Mbps connection you pay $44.95 per month.
Regardless, the falling fiber access prices are going to help convince consumers switch away from DSL and cable.
‘DSL rentals had been undergoing major price reductions since the beginning of 2006’, points out Vince Chook. ‘But with such a small drop over the quarter, cable modem is certainly losing its price competitiveness.’