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Forums » What Broadband Price War? » Duh, simple business.
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viperlmw
Premium
join:2005-01-25
·Qwest.net

Re: Duh, simple business.

said by itguy05 See Profile :

Surprise Surprise.... Just goes to show "competition" is merely a panacea that makes us THINK prices will go down.

In almost every case, competition does nothing to prices over the long run. You see, if company X can sell product A for $100 and make Z profit, why would I sell Product A for $50 and make $50-Z profit when I know the market will support the $100 price? That would be stupid.

We've seen the same thing with Cell Phones - There are 3-5 companies in an area and guess what? All are roughly the same price for the same minutes.

Competition is pretty much a farce and almost never results in largely reduced prices for consumers.

Just wait till all the IPTV and FiOS customers get their bills in year 2 and realize they are paying almost as much as cable.....
I would agree. One factor is, at some point, the costs associated with providing service dictates the amount a customer pays. And in more rural areas, that cost can be huge. And I don't know of any company making big profits from broadband access. At some point, it's sold as cheaply as it can be. That point may have been reached.

Alex1976

@telusmobility.com

Re: Duh, simple business.

I pay 29.99$ canadian dollars a month for 3.5 Mb DSL with unlimited trasfer. My ISP is not my landline provider. This is not a promotional thing.

If we can have such low prices in Canada with our 30 million population and huge land to cover, it means you guys could get a hell of a lot better if the FCC was actually doing it's job.
Forums » What Broadband Price War?


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