Following the broadband money

Rich pay least for broadband, study finds

with 5 comments

Despite claims that the UK has some of the cheapest broadband in the world, new research suggests that the UK is only 21st in terms of broadband affordability.

Sorce: Point Topic (Click to enlarge)

New data from market researcher Point Topic shows that broadband prices can be over a thousand times higher in terms of percentage of annual per capita income at purchasing power parity (ie comparing like for like) in poorer countries., Point Topic looked at more than 2,000 tariffs for the study.

Using the tariff for a year’s supply of the slowest available broadband service, the Swiss pay just 0.07% of their annual income for a year’s broadband, while Keyans can pay almost 80% of their annual income for theirs, said Point Topic CEO Oliver Johnson.

Britons, who pay 0.65% of their income for their most basic service, are 21st of the 64 countries studied.

Source: PointTopic (Click to enlarge)

“The analysis allows us to see how much of an average yearly income in each country would be needed to pay a year’s subscription for the cheapest option available. The results gap between rich and poor, the haves and have nots in broadband terms is revealing,” said Johnson.

Higher broadband penetration was in everyone’s interest, he said. “Governments gain revenue, businesses gain competitiveness and individuals get access to a wealth of benefits online.”

Johnson said mobile and satellite technologies offered access quickly and easily, but data caps and high overage costs meant take-up would be limited. Even the richest nations would have to subsidise 100% access, he said.

Written by Br0kenTeleph0n3

2011/09/16 at 08:01

5 Responses

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  1. The poor in the uk pay even more, because if they use it the tariffs go way higher. We have people on satellites round here who have no mobile, 3g or adsl and they use up their satellite data transfer in the first couple of days in the month. If they want a better tariff they have to pay £200 a month for it. This country is being conned. Fastest and best in the world? Not if they keep giving public money to the incumbent to patch up the old twisted pairs.


    2011/09/16 at 08:21

  2. So what to do with the BDUK money?


    2011/09/17 at 15:50

  3. It is quite astonishing to know that britons are at 21st position out of the 64 countries studied for per capita income spent on broadband,


    2011/12/30 at 12:04

    • Not sure why it’s astonishing. Ofcom’s policy has been to drive down the price the consumer pays. Some would argue this is why the national average broadband speed is under 7Mbps. I suspect the quoted figure may also leave out the fixed telephone line that is obligatory in most broadband contracts.

      Ian Grant

      2011/12/30 at 12:29

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