quinta-feira, novembro 21, 2024
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Six Insights from Our 2024 Business Broadband Analysis


The role of business broadband in WAN architecture is evolving. It’s no longer just a backup option—many enterprises now rely on it for core connectivity.

Thanks to the rise of cloud services and SaaS applications, broadband’s flexibility and cost-effectiveness make it a strong contender against legacy services like MPLS and DIA.

We’ve collected data from 170+ countries for our Business Broadband Pricing Database, covering nearly 7,000 broadband plans that range from 1 Mbps to 10 Gbps.

Here’s what we found:

1. Fiber Is King

Fiber-based plans now account for 53% of all business broadband plans globally, an increase from 43% in 2021.

The growing deployment of fiber has had a noticeable impact on the download speeds available. However, enterprises and other customers seeking access to new fiber connections often have to invest in greenfield development, which can increase costs due to the need for new infrastructure.

2. The 5G Wave Is Rising

5G is rapidly gaining traction. In 2021, 5G plans made up just 5% of global wireless plans. By 2024, that number has risen to 12%. Finland is leading the charge with the most 5G plans in our database.

5G’s lower latency and higher bandwidth are key factors driving adoption, especially in enterprises looking for cost-effective wireless connectivity options.

3. Price Erosion Continues

Price erosion remains a constant in the broadband market.

With declining wholesale transport costs, ISPs can now offer higher capacity plans at competitive prices. This trend is especially evident in Europe, where ISPs leverage economies of scale to provide significant per-Mbps savings—up to 81% for plans in the 51-100 Mbps range—encouraging upgrades to faster speeds.

Broadband pricing is heavily influenced by geography, local competition, and regulatory frameworks.

Still, broadband pricing is heavily influenced by geography, local competition, and regulatory frameworks. In remote areas, higher costs persist due to the increased investment required for infrastructure and technology, making these regions more expensive to service despite broader price reductions elsewhere.

4. Business Broadband’s Role in the WAN Is Expanding

Hybrid networks are becoming the norm as WAN managers integrate business broadband alongside MPLS and DIA to balance cost and performance.

Business broadband now accounts for 15% of WAN sites, with enterprises increasingly relying on it for high-capacity sites due to its affordability.

5. Wireless and Satellite Solutions Remain Critical for Remote Connectivity

While fiber dominates most regions, both wireless and satellite access continue to play crucial roles, particularly in remote and hard-to-reach areas.

Wireless plans account for 25% of all business broadband plans globally, with regions like Africa heavily relying on wireless and satellite connectivity to bridge infrastructure gaps.

Satellite broadband is a prime example of wireless technology stepping in where fiber can’t reach. It’s becoming a go-to option in rural markets where traditional infrastructure is too expensive or difficult to build. While satellite may not offer the high speeds of fiber, it’s essential for bringing connectivity to underserved regions where other networks just can’t cut it.

6. Unlimited Data Plans Are Becoming the Norm

As businesses push for greater bandwidth and flexibility, ISPs are responding by offering more unlimited data plans. In fact, by 2024, 64% of fiber plans came with unlimited data, reflecting the growing demand for seamless, high-speed connectivity.

These plans have become essential for enterprises that need to ensure stable, high-speed connectivity without worrying about data caps, particularly as demand for cloud applications and remote work continues to grow.

 

For a deeper dive into these findings, our full Business Broadband Pricing Database includes detailed insights on global pricing, access types, and broadband’s evolving role in WAN architecture.

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