5 Million Homes Would Benefit From Slight Drop In Broadband Prices

Fri, 28 Oct 2011
 
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A new report has revealed that a small reduction in the cost of broadband would make the technology affordable for million of extra households worldwide.

The study by telecoms analyst Point Topic claimed around five million more homes across the globe would be able to afford a broadband connection if the price was cut by just one per cent.

The organisation stated that the rollout of next-generation broadband solutions is "gathering steam", but warned that this could create a "deepening digital divide" between countries and regions with fixed broadband access and those unable to take advantage of the technology.

Point Topic chief executive, Oliver Johnson, said many countries still have lower levels of penetration "than you'd want to see", and claimed that the issue of broadband availability in these nations is largely due to the fact households cannot afford to pay for a broadband package, rather than a lack of coverage.

"Even in mature and relatively rich broadband markets there are significant shortfalls in take-up due to the cost of a subscription and the kit that goes with it," he explained.

Johnson said standards, information, competition and technological innovations will all be major factors in reducing broadband costs, but added that any price cuts will largely depend on "how much of any saving a supplier can pass on to its customers".