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Global Broadband Access Price Q2 Update

In Q2 2006, the average price for DSL entry-level services fell by 9.3 percent, twice as much as the price decline (4.5 percent) in cable modem services, according to the latest report from Point Topic.

As a result, the price gap between DSL and cable modem services has widened up to US$4.27. While FTTx prices remained constant, the broadband shared market is still being dominated by DSL and cable modem services. Moreover, most DSL providers continue their low-price leader advantage.

Among the 18 DSL operators included in Point Topic�s tariff benchmark survey, 5 of them (primarily in North America and EMEA) reduced their monthly tariffs by up to 50 percent. Bell Canada was the only operator increased its entry level package up by 16.9 percent. This is due to a service upgrade of its 256Kbps BASIC package to a faster 1Mbps download speed. Overall, the average DSL monthly tariff was US$27.44 with Chunghwa (Taiwan) still being rated as the cheapest DSL provider.

For cable modem services, 2 of 16 operators had price reductions of up to 33.4 percent in Q2 2006. Time Warner, being the operator with the biggest price cut, introduced a new entry level service -- Road Runner Intro offering download speeds up to 768k and priced at US$29.90 per month.

Likewise, OptusNet also reduced its EasyStart package by 25 percent priced at US$22.10 which was the cheapest cable modem service in the SEA (South East Asia) region. Although there had been progressive price reduction in cable modem service, the average cable modem rental (US$32.32) is still comparatively more expensive than DSL services.

In the FTTx market, the prices have remained unchanged since Q2 2005. With Point Topic's regional breakdown analysis, it was shown that SEA had the cheapest average FTTx rental (US$31.69) which was even cheaper than the cable modem rental within the same region and America.

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