Broadband prices come down worldwide

10 November 2008 13:57 GMT / By Katie Scott

It seems competition is forcing broadband providers around the world to bring their prices down.

According to UK analysis firm Point Topic, prices have dropped 20% in less than a year.

But there are huge variations in how much people have to pay around the world.

Middle Eastern and African countriesare paying a whopping $46 per megabit for DSL service where as in Western Europe, the cost is about $6 per megabit.

But DSL is also far more expensive than cable connectivity, but a lot of people simply do not have any other options.

As Ars Technica reveals: "Although the average worldwide costs paid each month by users of DSL and cable connections are almost identical now, the price per megabit is not".

"Around the globe, DSL remains far more expensive for the speed you get."

However, there has been some good news for DSL users as this broadband tech has shown the greatest drop in price.

Between the first and third quarters of 2008, DSL dropped from $25 per megabit to $18 per megabit.

Cable is still cheaper at $6-7 per megabit. But in the US, says the report, "speeds have gone up but the price hasn't changed".

South Korea and Japan are the leaders in laying fibre networks which provide the cheapest option for cost per megabit at just one or two dollars, but the average bill is higher at $65.