The cost of a megabit unit of fibre optic broadband has fallen as a result of competition between suppliers, according to research.

Point Topic found that worldwide, the price of a megabit of fibre broadband fell by over five per cent in the last three months.

Meanwhile, DSL prices fell by around four per cent, as providers seek to gain more customers.

Fiona Vanier, senior analyst at Point Topic, said: "Competition with other suppliers and other technologies has kept up the downward pressure on bandwidth prices in the last few months."

She said broadband over fibre fell by seven per cent in the last year while DSL prices dropped back by around 14 per cent.
However, the real change has been with cable technology, which is some 20 per cent cheaper than a year ago.

Broadband speeds have been increasing in the UK steadily for years, with trials of 100Mbps taking place in some British cities.

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