Broadband pricing strategies

Abstract

PurposeThis article seeks to consider why broadband technologies have been so successful in reaching such a large number of new users so quickly, and what characteristics of its pricing have made this possible.Design/methodology/approachExamines the different pricing strategies available, and their impact on broadband markets and prices, as well as some of the issues involved in measuring broadband prices.FindingsPricing strategies have major implications for the future development of telecommunication markets, as they are dismantling the constructs on which telecommunication services have historically been priced (namely, distance, time and location). Broadband pricing strategies, especially the growing trend towards flat‐rate pricing, promise to transform the revenue streams and expansion of communication services in future.Originality/valueThe findings, based on analysis of a unique price database across 145 countries, will be of value to operators and regulators.