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Comments on news posted 2009-06-05 09:53:14: The good news? According to the latest data from Point Topic, global broadband prices are 37.5% lower than last year as the cost to provide broadband service declines. ..

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danman7200

@bt.com

£10 for 10mbit

I'm paying £10 a month for 10mbit down 768k up, completely unlimited with no traffic shaping, and ive yet to see any congestion. It should be 16mb but too far from the CO. the bad news, i'm going to be stuck on these speeds for ages whilst the incumbent milks ancient copper wires and not lucky enough to live in the 50% of the population that can get 50mbit cable Sky/o2 are the only decent large dsl isp's in the UK. The rest traffic shape heavily, have download limits and are congested. cheaper prices normally means crappier service, no room for future investment which is starting to become a issue in the uk now.

Kudos to Verizon in the states for laying fiber!


RR User

@rr.com


from:
TKJunkMail See Profile

Statistics are fun

If U.S users paid the AVERAGE prices listed....

Comcast's 16mbps tier would be $90 a month, their 50 mbps tier would be $278 a month.

TWC's 15 mbps tier would be $84 a month. TWC's

Verizon's 20 mbps tier would be $25 a month, their 50 mpbs tier would be $62.

So looking at worldwide averages, clearly American cable companies are undercharging for their higher tiers while Verizon's overcharging for their tiers.

patcat88

join:2002-04-05
Jamaica, NY

Russia

Not in russia, have fun with your 128Kbitps dsl for $80 a month, it beats the worst rural US phone companies. I bet they put a filter on your line for dialup to not work above 9.6kbitps also.

»englishrussia.com/?p=684


funchords
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join:2001-03-11
Washington, DC
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1 edit
reply to RR User
Re: Statistics are fun

said by RR User :

If U.S users paid the AVERAGE prices listed....

Comcast's 16mbps tier would be $90 a month, their 50 mbps tier would be $278 a month.
Not quite. With a 250 GB monthly limit, Comcast's service has a capacity of about 750 Kbps.

said by RR User :

TWC's 15 mbps tier would be $84 a month.
TWC users are getting warning calls for 40 GB/wk usages. That makes them even cheaper quality (more expensive) than Comcast.

So looking at worldwide averages, clearly American cable companies are undercharging for their higher tiers while Verizon's overcharging for their tiers.
No, they're all overcharging. The last paragraph of the article linked above says, "However, prices in the U.S. have been relatively flat, which Johnson blames on local markets that are still monopolies or duopolies."
--
Robb Topolski -= funchords.com =- District of Columbia -- KJ7RL
edit 1: cheaper quality (more expensive)


TKJunkMail
Enjoy the sun
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join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Flat prices can be explained by devalued dollar

There is a real easy explanation for flat prices in the US. The value of the dollar has dropped approx 11% over the last 3 months compared to a basket of other currencies. By holding prices flat, it means that US broadband providers have actually absorbed a 11% price cut due to the lower value of the dollar, when compared to foreign figures.

»money.cnn.com/2009/06/04/markets···ndex.htm


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funchords
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join:2001-03-11
Washington, DC
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Have you or I or anyone else got an 11% price cut? If not, then your ultimate conclusion -- although very thoughtful -- is incorrect.
--
Robb Topolski -= funchords.com =- District of Columbia -- KJ7RL


funchords
Hello
Premium,MVM
join:2001-03-11
Washington, DC
·Verizon Online DSL
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$1.25 per Mbps for fiber, $5.65 per Mbps for cable?

For a given data rate, the cost of fiber and cable connections has also dropped by 20 percent and 30 percent, respectively. Currently, the cost is about $1.25 per megabit per second for fiber and $5.65 for cable.

Shouldn't the cost for cable, inferior to fiber for data, be lower? Can anyone explain this one?
--
Robb Topolski -= funchords.com =- District of Columbia -- KJ7RL


NetAdmin
CCNA

join:2008-05-22


1 edit
reply to TKJunkMail
Re: Flat prices can be explained by devalued dollar

said by TKJunkMail See Profile :

By holding prices flat, it means that US broadband providers have actually absorbed a 11% price cut due to the lower value of the dollar, when compared to foreign figures.
Prima facia that statement makes sense, but because all of their residential customers are within the US, the exchange rate the of the dollar doesn't affect them when dealing with US customers.
--
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cicerone

join:2007-09-05
San Francisco, CA
·Comcast


4 edits
US Prices are criminal

I am paying $70/mo for 20/5 mbps (Comcast Cable Internet). With basic cable that drops $10. (What a deal, right?). They recently started offering 50mbps down at $140/mo (with cable).

The $20 ATT DSL option is only 768k. Incredible. "Elite" is $35/mo and only 6mbps! What a joke.

These are the only two providers to my particular neighborhood (in San Francisco). And I want the higher speeds so I'm stuck until FIOS comes around.

And most U.S. customers can only dream of these speeds, and often only have 1 provider. It's all relative.


baineschile
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Premium
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Sterling Heights, MI
·Comcast
·magicjack.com
·Verizon Wireless B..

reply to funchords
Re: Statistics are fun

said by funchords See Profile :

said by RR User :

If U.S users paid the AVERAGE prices listed....

Comcast's 16mbps tier would be $90 a month, their 50 mbps tier would be $278 a month.
Not quite. With a 250 GB monthly limit, Comcast's service has a capacity of about 750 Kbps.
Assuming you run your connection 24/7, yes. If one is doing that though, maybe one should upgrade to business class, where caps are not an issue.

TransitJohn

join:2009-05-08
Laramie, WY
reply to danman7200
Re: £10 for 10mbit

You have nothing to complain about. I pay $60 per month for 1536/672 kpbs, with no hope of faster speeds available; this in a town of 30,000.


TKJunkMail
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Avalon, NJ
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reply to NetAdmin
Re: Flat prices can be explained by devalued dollar

said by NetAdmin See Profile :

said by TKJunkMail See Profile :

By holding prices flat, it means that US broadband providers have actually absorbed a 11% price cut due to the lower value of the dollar, when compared to foreign figures.
Prima facia that statement makes sense, but because all of their residential customers are within the US, the exchange rate of the dollar doesn't affect them.
It does affect them. These companies pay more for equipment purchased overseas(almost everything is made in Asia); outsourced services(like call centers in India); borrowed funds to finance capital budget; etc due to the lower value of the dollar vs where they are getting these products & services. So their real costs are rising while holding prices to customers flat in the US.
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TransitJohn

join:2009-05-08
Laramie, WY
reply to NetAdmin
It affects them in the sense that the dividend payouts to shareholders are relatively lower compared to other currencies, which is why prices haven't fallen.


NetAdmin
CCNA

join:2008-05-22


1 edit
reply to TKJunkMail
said by TKJunkMail See Profile :

It does affect them. These companies pay more for equipment purchased overseas(almost everything is made in Asia); outsourced services(like call centers in India); borrowed funds to finance capital budget; etc due to the lower value of the dollar vs where they are getting these products & services. So their real costs are rising while holding prices to customers flat in the US.
Then that isn't an 11% cut in revenue, that is an 11% increase in the cost of purchasing equipment. There is a difference.

The exchange value of the dollar doesn't affect the value of the dollar when both parties are using the dollar, only when the parties are exchange currencies.

I fixed my previous statement to make it clearer.
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"This is a bus. You know how big a bus is?"

jester121
Premium
join:2003-08-09
Lake Zurich, IL
·surpasshosting
·ViaTalk

reply to funchords
Re: Statistics are fun

said by funchords See Profile :

No, they're all overcharging. The last paragraph of the article linked above says, "However, prices in the U.S. have been relatively flat, which Johnson blames on local markets that are still monopolies or duopolies."
Static prices while speeds increase = NOT FLAT PRICES (the entire story is about dollars per Mbps).

If they were overcharging they'd be hemorraging customers, and they aren't. More accurate would be to say "They're charging more than Robb thinks is fair."


NetAdmin
CCNA

join:2008-05-22

reply to TransitJohn
Re: Flat prices can be explained by devalued dollar

said by TransitJohn See Profile :

It affects them in the sense that the dividend payouts to shareholders are relatively lower compared to other currencies, which is why prices haven't fallen.
Absolutely, but that's another issue entirely.
--
"This is a bus. You know how big a bus is?"


NetAdmin
CCNA

join:2008-05-22

reply to funchords
Re: $1.25 per Mbps for fiber, $5.65 per Mbps for cable?

said by funchords See Profile :

For a given data rate, the cost of fiber and cable connections has also dropped by 20 percent and 30 percent, respectively. Currently, the cost is about $1.25 per megabit per second for fiber and $5.65 for cable.

Shouldn't the cost for cable, inferior to fiber for data, be lower? Can anyone explain this one?
In theory, because you have less bandwidth available to cable users, but roughly the same demand, the price is greater due to scarcity.
--
"This is a bus. You know how big a bus is?"


RR User

@rr.com

reply to funchords
Re: Statistics are fun

said by funchords See Profile :

Not quite. With a 250 GB monthly limit, Comcast's service has a capacity of about 750 Kbps.
Now you're mixing data RATE and CAPACITY. The article was about RATE, not CAPACITY. My comment was about RATE, not CAPACITY.

said by funchords See Profile :

TWC users are getting warning calls for 40 GB/wk usages. That makes them even cheaper quality (more expensive) than Comcast.
These "warning calls" and caps DO NOT physically affects data RATE, so it doesn't make any difference in this situation which is not about CAPACITY.

said by funchords See Profile :

No, they're all overcharging. The last paragraph of the article linked above says, "However, prices in the U.S. have been relatively flat, which Johnson blames on local markets that are still monopolies or duopolies."
Prices are flat but data RATES are going up, so cost per bit is dropping same as the rest of the world. Below worldwide average costs for the higher cable data RATES, in fact.


karlmarx

join:2006-09-18
iraq
·Fairpoint Communic..

reply to cicerone
Re: US Prices are criminal

No, you are PAYING $70.00 for 250GB, EXACTLY the same amount of data you can get with a 768KB DSL line. Remember, you are not paying for 'speed', you are paying for bytes. If I was in your shoes, I would save the $50 dollars ($600 a year), and go with the $20.00 tier, as you can GET exactly the same amount of data. With FIOS however, even if you only get the 15mb tier (about $70.00), you can get 8TB/month (vs the .25 TB) at comcast, so FIOS is 32 times MORE effective than Comcrap, and DSL is about 3.5 times more effective than Comcrap. You are getting screwed, you just don't realize it. And god forbid you actually pay for the 50mb/sec tier, which means that FIOS is over 60 Times more cost effective than Comcrap
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RR User

@rr.com

reply to funchords
Re: Flat prices can be explained by devalued dollar

said by funchords See Profile :

Have you or I or anyone else got an 11% price cut? If not, then your ultimate conclusion -- although very thoughtful -- is incorrect.
Price cut for WHAT EXACTLY? Overall cost or cost per mbps? The article is about cost per mbps.
said by article :
Internet service providers are offering faster DSL connections for the same price in a battle for market share: Per megabit per second, prices are now 37.5 percent lower than last year, according to market research company Point Topic.
I've gotten a 50% data RATE increase, so my cost per megabit per second has gone down.

$54 for 10 mbps = $5.40 per mbps
$54 for 15 mbps = $3.60 per mbps

That's a 33% cost decrease for me per mbps.
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