FTTH Now Cheaper Than Cable Broadband, Too Bad Nobody Can Get It
from the 100Mbps-or-die dept
The latest broadband statistics from Point Topic (via GigaOM) suggest that globally, fiber to the home (FTTH) is not only getting more popular, it’s getting less expensive. The data says that FTTH home connections have dropped in price by 12% to $28.10 per month on average. That’s below the $29.50 average monthly cost for cable, but above the $25 monthly average for DSL, which is the most popular connection type world wide. The industry expects FTTH hardware prices to drop further as pricey bulk optics are used less in networking gear. Of course this doesn’t mean a whole lot for the American broadband market, where Verizon is the only major company offering residential fiber, owning more than 81% of the nation’s fairly paltry 446,990 FTTH customers (as of the end of 2005, anyway). The global FTTH price average is probably skewed down by the high volume of absurdly cheap apartment building FTTH lines in Asia, with the cable average skewed up by the high number of high-priced cable broadband lines in the States. Still, there’s no doubt that American cable broadband providers will someday have to more seriously compete on price. Comcast CEO Brian Roberts can no longer pretend this is a race between BMW (cable) and Hyundai (DSL), because there’s a sexy Aston Martin in his rear view mirror.