Broadband Prices Dropping, Just Not For You
Global prices 37.5% lower this year, just not in United States...
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
. The cost of fiber and cable connections have dropped by 20% and 30% respectively, with global citizens paying, on average, $1.25 per megabit per second for fiber and $5.65 for cable. The bad news? While France, Germany, the UK and Asia are seeing these drops, prices in the United States remain flat, something Point Topic blames on monopoly and duopoly markets (in other words, not enough competition).
77 comments .. click to read
|reply to FFH |
Re: Flat prices can be explained by devalued dollar
said by FFH:Then that isn't an 11% cut in revenue, that is an 11% increase in the cost of purchasing equipment. There is a difference.
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.
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.
"This is a bus. You know how big a bus is?"
actions · 2009-Jun-5 10:52 am · (locked)