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franknalco

join:2005-01-27
Littleton, CO
reply to 88615298

Re: For now

Pricing is a usually a market driven force and not always a factor of margins or costs. Diamonds are found in the dirt, and sell retail for thousands of dollars, a nice mark-up if you can get it. T-shirts cost probably less than a dollar, and yet some sell for nearly $100. I used to buy a pair of jeans for $15 and am in shock to see some sell for over $200. Wireless broadband costs will come down only as a result of competition. Either more companies enter the wholesale market (which is doubtful considering the cost of entry), cost to deliver the service falls dramatically and someone hungry for market share cuts prices (read sprint or t-mobile), or there is a paradigm shift (like universal wi-fi availability for free). I personally feel that it is the second of the three (and there may be more drivers as well - like consumers turning to alternatives such as prepaid) that is the most likely. That only arises with fatter bandwidth and lower costs.