1 edit | If BB rate is up & prices up; then prices aren't too high If the rate of broadband adoption is up & rising while prices are up, then I guess that is proof that prices aren't too high. In fact prices should be raised in order to maximize profits.
1st rule of a successful business:
- keep raising prices until your growth rate slows and your customers start going to competitors.
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 jmn1207Premium
join:2000-07-19
Ashburn, VA | It could be more complicated than that if one considers that perhaps broadband service is becoming more of a necessity for an increasing number of people. It's certainly far from clean water or electricity, but each year we get closer to seeing broadband becoming a crucial service for a growing number of people. Broadband is becoming a very important resource for an ever increasing population, and possibly these corporations are simply reaping the benefits and taking advantage of the situation?
Perhaps the supply/demand model is not perfect when considering that a percentage of this growth is based off need and not merely privileged convenience. The price may not have as much of an impact than it otherwise would if this were exclusively a luxury service. This is one of the biggest issues when dealing with a service that falls somewhere between a comfort and a requirement, as dictated by individual circumstances. |
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| reply to fAcEtIOUs
I think the data has already demonstrated a lack of competition is what has allowed businesses to raise their rates without customers going to competitors. That's why areas with 4 or more providers have such low monthly rates. In areas with less providers, there is more collusion. |
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| reply to fAcEtIOUs
said by fAcEtIOUs:... 1st rule of a successful business: - keep raising prices until your growth rate slows and your customers start going to competitors. you keep pretending there is competition. the majority of the U.S. market has little or no competition. if there is no competition, there is nowhere to go. the choice is keep paying the higher price or drop broadband.
to me, it's very telling that comcast (my provider) hasn't raised broadband prices since I got it (whereas cable TV price increases like clockwork) - to me, that says they priced it as high as they could years ago and since their profit increases every year because of the declining cost of bandwidth and equipment, they don't feel the need to increase prices even in areas with no competition. |
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 C0deZer0Oc'D To Rhythm And PolicePremium
join:2001-10-03
Davenport, FL | reply to fAcEtIOUs
That's assuming that some of the people currently being served actually have a choice for a competitor.
To all those that say that broadband internet is a commodity, I say... "Well, so was running water and POTS service a century ago, too."  Internet access now is about as crucial to business (and personal use) as delivery of clean drinkable water was back when this country was being first settled. And nowadays, in order to be able to access (or share) the types of content being shared on the internet nowadays, you would need broadband level internet access with which to be able to just keep up.
I still remember how painful it was just to even download Service Pack 2 for Windows XP when that came out, since at the time I was suffering through still on just dialup. In short, nearly a full week of lost productivity because of time-outs in mid-download and having to restart the download ad nauseum every time the phone was needed for something else. In all that time, the line was pretty much open to get any other kind of nasty surprise along the way as well. 
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