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story category What Broadband Price War?
Public Knowledge laments duopoly
(old news - 12:01PM Tuesday Jul 11 2006)
tags: dsl · prices · competition · cable
Public Knowledge takes a look at the current "competitive" broadband climate. The piece points to a new study by Kagan research that suggests the existing duopoly system has allowed incumbent providers to avoid significant price-reductions (other than introductory offers) and other adaptation you'd see in a truly competitive environment. "Though the battle for broadband access subscribers is intense, there’s no screaming price war between cable TV and telcos, and Kagan Research doesn’t expect one in the foreseeable future," the report proclaims. It notes the average price for cable modem service was $39.45 per month, and $35.38 for DSL.

Related:
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Forums » What Broadband Price War?
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AnonProxy
Proxy of Anon
Premium
join:2001-05-12
ß

edit:
July 11th, @11:44AM

There is a bit of a price war

AOL is boosting the cost of their dial up to move people to broadband (they are at war with themselves)
SOme places are offering low tiered service cheap...but really putting it to ya for the high speed stuff.
lvas

join:2001-05-17
Glen Carbon, IL

avg rate is not 34.99 for dsl

$12.99 per month is 12-month promotional rate for AT&T Yahoo! High Speed Internet Express with an ongoing rate of $29.99 per month after the promotional term
averagedude

join:2002-01-30
Mesa, AZ

Re: avg rate is not 34.99 for dsl

Remember the $29.99 is just the base, now add all the "fees".

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

Re: avg rate is not 34.99 for dsl

said by averagedude See Profile :

Remember the $29.99 is just the base, now add all the "fees".
YEAH!. take your bottom basement DSL at $14.99/mo and after all the bull$hit fees, you are up to cable pricing. only cable at that price is like 5 times faster that that DSL.
--
You can never be too rich, too thin or have too much Bandwidth
wev567

join:2006-02-25
Pittsburgh, PA

Re: avg rate is not 34.99 for dsl

How much is yer cable? Even if the "fees" are 6.95 a month (which I doubt), yer cable would have to be $24 or so to be the same. And 5 times faster isn't important to the $14.95 DSL buyer.
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: avg rate is not 34.99 for dsl

said by wev567 See Profile :

And 5 times faster isn't important to the $14.95 DSL buyer.
Speak for yourself. Many people want the price AND the speed. Until you do a scientific survey or study, you are not qualified to make such a statement.

Hell, you only have to go as far as BBR here to see that people believe that 15mb or 30mb speeds should be priced at about $20.
wev567

join:2006-02-25
Pittsburgh, PA

Re: avg rate is not 34.99 for dsl

Some people also believe it should be about 10 cents a mb, but when will that happen? If you can get 5 times faster for $5 or $10 a month more, go for it. Cable is billing itself as a "deluxe" service, and overall prices itself accordingly. The bells are working on entry level broadband converts while they build a fiber network to compete. If you think that the telcos are forcing 768 DSL on people who would rather have 15mb, you must not be watching the ads touting "My DSL is so much faster than dial-up."

KrazyDawg

join:2001-02-07
Vallejo, CA
clubs:

said by lvas See Profile :

$12.99 per month is 12-month promotional rate for AT&T Yahoo! High Speed Internet Express with an ongoing rate of $29.99 per month after the promotional term
It is the average rate when you're not counting the promotional 12 month offer. Also, that offer is not available to everyone so the average rate on the article isn't off by a large margin.
RogerB34
Premium
join:2004-07-01
San Diego, CA

Re: There is a bit of a price war

There isn't a broadband price war with respect to performance.
While I pay $45 for cable at 4600 kpbs, my neighbors pay $17 for 360 kpbs dsl.
They are happy to have always available connects and the snail download speeds are ok. AT&T is thrilled to have them.
Why would AT&T increase performance to customers who haven't the slightest clue?
itguy05

join:2005-06-17
Camp Hill, PA

Duh, simple business.

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.....

tsu

join:2001-08-17
Wheeling, IL

Re: Duh, simple business.

"Prices going down" is just ISP-speak for "increasing bandwidth (but not dropping prices)."

jslik
That just happened
Premium
join:2006-03-17
clubs:

said by itguy05 See Profile :

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.....
Excellent point, which brings up the subject of why does everyone want to rush this regulatory giveaway of the farm to the telcos in the name of 'speeding up' deployment. The decisions we make right now we'll have to live with for decades.
broadbander

join:2005-07-21
Brooklyn, NY
·Verizon Online DSL

Re: Duh, simple business.

said by jslik See Profile :

said by itguy05 See Profile :

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.....
Excellent point, which brings up the subject of why does everyone want to rush this regulatory giveaway of the farm to the telcos in the name of 'speeding up' deployment. The decisions we make right now we'll have to live with for decades.
Look to the East. Regulation is reasonable in some markets.

jslik
That just happened
Premium
join:2006-03-17
clubs:

Re: Duh, simple business.

said by broadbander See Profile :

Look to the East. Regulation is reasonable in some markets.
Sounds good, but it all depends on your definition of reasonable regulation, doesn't it?
bamabrad

join:2006-01-27
Port Orange, FL

Key words"paying almost as much". Most of the recent studies show that the majority of consumers prefer lowest cost when the offerings are similar and will switch only when there is a significant price difference or they get upset with their current provider.Maybe what we need are local providers with local government incentives to keep the duopolies from becoming too overbearing.
viperlmw
Premium
join:2005-01-25
·Qwest.net

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.
Ahrenl

join:2004-10-26
North Andover, MA
Competition is hardly a farce. It completely works.

However, in the absence of a free market, there is none.

ieolus
Support The Clecs

join:2001-06-19
Duluth, GA

Re: Duh, simple business.

And you can't have a free market for broadband when only a handful of companies control the pipes into all homes.

The ONLY way to have a free market for broadband is to have an entity that owns the pipe into the home but does NOT sell service... instead, any service provider can use the pipe for a fee, letting the consumer decide who he/she wants service from.
--
"Speak for yourself "Chadmaster" - lesopp

JakCrow

join:2001-12-06
Palo Alto, CA
The telcos and cablecos don't want a free market.

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Duh, simple business.

There's no such thing as a 'free' market. When are people going to realize this and quit throwing the phrase around as if it means something? Neo-liberal trade policies promote anything BUT a market that inspires free trade. Getting 'govt off the back of business' is simple code for giving away the farm to business interests, period.

--
"I am not young enough to know everything."
Oscar Wilde
Ahrenl

join:2004-10-26
North Andover, MA

Re: Duh, simple business.

said by Titus Pullo See Profile :

There's no such thing as a 'free' market. When are people going to realize this and quit throwing the phrase around as if it means something? Neo-liberal trade policies promote anything BUT a market that inspires free trade. Getting 'govt off the back of business' is simple code for giving away the farm to business interests, period.

Oh, how enlightening. I guess we'll have to go and rewrite The General Theory of Employment, Interest and Money. Thank god we have you..

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Duh, simple business.

said by Ahrenl See Profile :

said by Titus Pullo See Profile :

There's no such thing as a 'free' market. When are people going to realize this and quit throwing the phrase around as if it means something? Neo-liberal trade policies promote anything BUT a market that inspires free trade. Getting 'govt off the back of business' is simple code for giving away the farm to business interests, period.

Oh, how enlightening. I guess we'll have to go and rewrite The General Theory of Employment, Interest and Money. Thank god we have you..
Don't thank God; explain to us the oxymoron that is the "free market" and make your case.

--
"I am not young enough to know everything."
Oscar Wilde
Ahrenl

join:2004-10-26
North Andover, MA

Re: Duh, simple business.

said by Titus Pullo See Profile :

said by Ahrenl See Profile :

said by Titus Pullo See Profile :

There's no such thing as a 'free' market. When are people going to realize this and quit throwing the phrase around as if it means something? Neo-liberal trade policies promote anything BUT a market that inspires free trade. Getting 'govt off the back of business' is simple code for giving away the farm to business interests, period.

Oh, how enlightening. I guess we'll have to go and rewrite The General Theory of Employment, Interest and Money. Thank god we have you..
Don't thank God; explain to us the oxymoron that is the "free market" and make your case.

Pay for a college education and learn it for yourself. There are reams of books written about it, although most of it is common sense. I have better things to do with my life than educate you on base theories of society. Just saying something that is accepted by 99.9% of the world isn't true, isn't a basis for a discussion.

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Duh, simple business.

said by Ahrenl See Profile :

Pay for a college education and learn it for yourself. There are reams of books written about it, although most of it is common sense. I have better things to do with my life than educate you on base theories of society. Just saying something that is accepted by 99.9% of the world isn't true, isn't a basis for a discussion.
I have one of those, but thank you for thinking of me

No one is questioning whether the free market exists in convoluted practice, theory, or concept; my position is that what most people believe re the free market is fallacy.

Read a little on your own -- I chose the simplest query I could think of:

»www.google.com/search?q=%22no+free+market%22

PS: I'm guessing we weren't high on the debating team's list, huh? It would help if you read a reply and tried to comprehend the point before jumping silly into water well above your head

Sorry, but people who blow smoke in my face don't engender goodwill.
--
"I am not young enough to know everything."
Oscar Wilde
Ahrenl

join:2004-10-26
North Andover, MA

Re: Duh, simple business.

Yes, you're debating skills are unparalleled. Again, simply stating something that's greatly accepted is a fallacy is not a discussion or debate.

If your thesis is based on what you've searched on google then I guess we have nothing more to say. One of my bachelors degrees happens to be in economics, not to mention I work in the field, but thanks for displaying the size of your ego for all to see.

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Duh, simple business.

said by Ahrenl See Profile :

Yes, you're debating skills are unparalleled. Again, simply stating something that's greatly accepted is a fallacy is not a discussion or debate.
Wah??

You are knowledge wins

--
"I am not young enough to know everything."
Oscar Wilde
broadbander

join:2005-07-21
Brooklyn, NY
·Verizon Online DSL

Re: Duh, simple business.

The freer the market, the cheaper the price (so long as cross-subidization is not involved).

Illegal markets are the best example.

Witness pirated technologies, stolen clothing goods or squater-farmed land and witness theory becoming reality.

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Duh, simple business.>

said by broadbander See Profile :

The freer the market, the cheaper the price (so long as cross-subidization is not involved).

Illegal markets are the best example.

Witness pirated technologies, stolen clothing goods or squater-farmed land and witness theory becoming reality.
Something as simple as the U.S. sugar market is a pretty good example of a 'free' market in action.

--
"I am not young enough to know everything."
Oscar Wilde
broadbander

join:2005-07-21
Brooklyn, NY
·Verizon Online DSL

Re: Duh, simple business.>

said by Titus Pullo See Profile :

said by broadbander See Profile :

The freer the market, the cheaper the price (so long as cross-subidization is not involved).

Illegal markets are the best example.

Witness pirated technologies, stolen clothing goods or squater-farmed land and witness theory becoming reality.
Something as simple as the U.S. sugar market is a pretty good example of a 'free' market in action.

Describe what/when you're referring too and what governments are involved in the process. If governments are involved in the supply or demand side, then the market isn't free in ANY way. Any labor force being exploited by "capitalism" is probably being exploited primarily by their own government. Fascism works with particular pieces of a market to help form state-sanctioned monopoly (hardly a free market function). Communism, rather than give profit to the workers, simply cuts the labor part of the cost of production out entirely, essentially creating a capitalist society with a serf class (that has no hope of breaking that distinction).

The history of "exploited peoples" is a history of corrupted persons, not corrupt economies. An evil person in charge of a government is 100X more dangerous than an evil person in charge of a corporation (which is oxymoron, it is impossible to completely "be in charge" of a corporation in a theoretical sense, because of supply and demand).

As for Che, well, any fellow who wanted primarily to destroy the existence of myself and those around me is not okay in my book or anyone to follow.

Gandhi, Jesus, Buddha, Douglass ... these are history's heroes regardless of their political/religious affiliations. Militant ideologists of any stripe are not(read Che's comments on the Cuban missile crisis and try to earnestly support him or what he represents in anyway).

Certainly, in particular markets, regulation can help ensure safety and bring about competitive behavior that protects consumers in some way. However, I contend that over-regulation (i.e. government control of important industries) is far more disastrous than the converse (a completely free market). And centralizing wealth (a.k.a. high federal taxes) is an invitation for just that.

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Duh, simple business.>

said by broadbander See Profile :

said by Titus Pullo See Profile :

said by broadbander See Profile :

The freer the market, the cheaper the price (so long as cross-subidization is not involved).

Illegal markets are the best example.

Witness pirated technologies, stolen clothing goods or squater-farmed land and witness theory becoming reality.
Something as simple as the U.S. sugar market is a pretty good example of a 'free' market in action.

Describe what/when you're referring too and what governments are involved in the process. If governments are involved in the supply or demand side, then the market isn't free in ANY way. Any labor force being exploited by "capitalism" is probably being exploited primarily by their own government. Fascism works with particular pieces of a market to help form state-sanctioned monopoly (hardly a free market function). Communism, rather than give profit to the workers, simply cuts the labor part of the cost of production out entirely, essentially creating a capitalist society with a serf class (that has no hope of breaking that distinction).

---
From: »www.amconmag.com/2006/2006_06_05···cle.html

"The sugar industry in America has never really operated in a free market. Cane sugar in Florida wouldn’t exist if the state government hadn’t drained the Everglades. It would disappear if the Army Corps of Engineers didn’t permanently alter the landscape and manage it at taxpayer expense to expose the muck soil and keep the water level just right for the growers.

Washington also provides subsidies to all sugar farmers in the form of loans collateralized by sugar—about 18 cents per pound. The world price of sugar is usually around 10 cents per pound or less, but the federal government also drastically limits sugar imports, ensuring a domestic price of about twice that. Uncle Sam also subsidizes private sugar storage facilities."

There's but one example of your 'free market' in action.
---

The history of "exploited peoples" is a history of corrupted persons, not corrupt economies. An evil person in charge of a government is 100X more dangerous than an evil person in charge of a corporation (which is oxymoron, it is impossible to completely "be in charge" of a corporation in a theoretical sense, because of supply and demand).

---

Most of history IS "exploited peoples" -- exploited by the powerful for more power. It continues today in every form imaginable. We just witnessed 'free' elections in Mexico where the US had its hands all over the process. Nothing like this 'freedom' thing in the whole world. Someone accused me of using buzzwords. Sh*t, the US govt is the marketing capital of buzzwords -- freedom being the biggest chainsaw on the block.

---
As for Che, well, any fellow who wanted primarily to destroy the existence of myself and those around me is not okay in my book or anyone to follow.

Gandhi, Jesus, Buddha, Douglass ... these are history's heroes regardless of their political/religious affiliations. Militant ideologists of any stripe are not(read Che's comments on the Cuban missile crisis and try to earnestly support him or what he represents in anyway).

---
I won't EVEN take the religious bait; I've been down that dark road before, and I've explained the 'Che' thing before, and it isn't what you think, and I don't want to digress down that path.

---

Certainly, in particular markets, regulation can help ensure safety and bring about competitive behavior that protects consumers in some way. However, I contend that over-regulation (i.e. government control of important industries) is far more disastrous than the converse (a completely free market). And centralizing wealth (a.k.a. high federal taxes) is an invitation for just that.

---

Then which of the two do you think is occurring now if not the centralization of wealth? Have you looked at the numbers? And how is it that we have one tax CUT after another yet the income gap is growing at a rate not seen since the gilded age? I'll say it again: textbook economics reads like junk science and the lingua franca of the ruling class when juxtaposed with the reality of human greed and ITS influence on all we know and experience day to day.

--
"I am not young enough to know everything."
Oscar Wilde

See 15 replies to this post

Old Buzzard

@rr.com
Sorry, but I just can't take economic advice from someone with a Che avatar seriously.

Especially when it's mostly buzzwords with little backing.

Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Duh, simple business.

said by Old Buzzard :

Sorry, but I just can't take economic advice from someone with a Che avatar seriously.

Especially when it's mostly buzzwords with little backing.
That's a bitch; I replaced my avatar before reading your reply. Shucks! I've explained the Che thing before, so troll my post history if you care (I doubt anyone would).

For the record, unlike others who claim expertise, I'm not giving advice on economics; I leave junk science to those fond of koolaid. My point was simply that I wish people wouldn't toss around terms with little knowledge of their history, derivation, or contemporary relevance.

--
"I am not young enough to know everything."
Oscar Wilde

Mactron
el Camino Real
Premium
join:2001-12-16
CM94sv

said by itguy05 See Profile :

Surprise Surprise.... Just goes to show "competition" is merely a panacea that makes us THINK prices will go down.
I had 768/128 for $49.95 a month five years ago. Today I have 3000/768 for $29.95 a month. All with the same ISP.
Funny how competition works.
--
If only the Verizon CSRs worked this well.
itguy05

join:2005-06-17
Camp Hill, PA

Re: Duh, simple business.

quote:
I had 768/128 for $49.95 a month five years ago. Today I have 3000/768 for $29.95 a month. All with the same ISP.
Funny how competition works.
And which ISP is this? During the 5 years I was with Covad, they "upgraded" the speed a couple times, but I never saw it as I was way on the end of the line from the CO. Then again, I was paying $40/mo for 600/128 DSL.

Now I'm with Comcast, paying $4something for 6000/something. Or I could have went with Verizon for $10 phone line+ $20 for 3/something DSL.

Or get "naked" DSL for $50/mo....

So, yeah they are all about the same price. Some charge less for less speed, some charge more for more speed. So far, I'm very happy with my Comcast cable and Internet - about $5 more than I was paying to DirecTV and Covad and I get cooler features and HD, which would have been a $400 inventment with DTV.

timcuth
Braves Fan
Premium
join:2000-09-18
Pelham, AL
clubs:
·AT&T Southeast

Pretty much the same for me. Three years ago, I had 1472/256 service for $55/mo. Now, from the same provider (BellSouth), I have 3552/384 for $35/mo. It may not be the greatest price in the world, but I am relatively happy with it.

Tim
--
The shortest sentence is, "I am". The longest is, "I do".
~ Project Hope ~
rradina

join:2000-08-08
Chesterfield, MO
·Charter Pipeline
·Vonage

So your theory is that the only way businesses increase revenue is by raising prices or, assuming the market is not 100% saturated, gaining new, never before serviced customers. Assuming the market is saturated, a business cannot increase revenue but can increase profits by becoming more efficient.

I work in the retail grocery industry. Average margins are razor thin single digit margins. Believe me, if we could charge what the market will support, we wouldn't be making single digit margins. I understand Wal-Mart achieves a profit of ~7%. I don't know whether this is on grocery or general merchandise + grocery. Even with sales of $400 billion, Wal-Mart pales in comparison to recent oil company profits. (Not that I deny them those profits -- just stating facts.)

The principle reason why prices aren't dropping in the broadband market is because there is no real competition. There's certainly SOME competition but it's merely a game played by two pigs at a trough determining who can eat more before they pass out from cardiac arrest. That's why we need net neutrality.

calvoiper

join:2003-03-31
Belvedere Tiburon, CA
·Comcast Formerly ..

Re: Duh, simple business.

This is the key point--there isn't competition with a duopoly.

Saying there isn't competition in cellular because prices are similar is a lie. Prices are similar in markets with several providers because competition drives all prices towards long-run marginal cost, not because there is collusion between the players.

Any commodity from gasoline to laundry soap to fast food sees some similarity in pricing--if not, the unreasonably priced product dies. Yes, product distinctions also form part of competitive appeal--but pricing also adjusts for those changes.

And back to cellular, I remember the '80's and early '90's when there were just two cellular providers in each market. We had no subsidized handsets, no free night/weekend minutes, no "rollover", and I was paying about $45 for service and 35 minutes per month--overages at $0.30 plus per minute. The top of the line was a "grand pack"--a thousand minutes, for about $150 per month. Competition has come a long way--and one of the true benefits of competition IS similar pricing at a low level, meaning you can make your choice of service based on factors other than pure price and still get a reasonable deal.

calvoiper
--
VoIP--the death knell of remaining voice monopolies!

KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD
clubs:
·Speakeasy

The reason you would reduce the price of your product, reducing your profit per product, is to increase volume.
So at $100/widget, you make $60/widget profit.
You reduce the cost to $50/widget so you're only making $10/widget
If you increase your customers/volume by more than 60%, your profit will actually go up!
(I hate numbers and didn't think hard about that, the percentage could be wrong, but the point is the same).
KM
--
War is a test of power, not a search for truth or justice. Can the violation of the primacy of love, destruction of life, and tearing of society truly be the will of God?

roamer1
sticking it out at you

join:2001-03-24
Atlanta, GA
clubs:
·Voicepulse Connect
·Teliax VOIP
·Speed Factory
·Cingular Wireless

said by itguy05 See Profile :

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.
Huh? Most markets have two "premium" carriers (Verizon and Cingular) with nearly identical pricing, two carriers (Sprint Nextel and T-Mobile, or in the Carolinas Sprint Nextel and SunCom) with slightly cheaper pricing, and one or more local/regional carriers with lower pricing (Alltel, US Cellular) if not unlimited service (Cricket, Metro PCS, Revol). The Northeast Corridor is the major exception to the rule in that the third category of carrier generally doesn't exist in that part of the country because the first two categories of carriers ate up all the spectrum.

-SC
--
"it seems like all you ever buy is Abercrombie and cell phones" --a friend
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: Duh, simple business.

Why do you not classify sprint with verizon and cingular? are you talking pricing alone? or the type of "carrier" they are?

Bottom line is ever carrier has their gimmic and as with all carriers, they ALL give you alot of stuff for a package but always manage to leave "something out" or something to be less desired.. the catch.

Sprint, for example, has the free incoming plans. They are about $39.99 a month for 350 minutes - they have nights and weekends and national long distance. (Now includes nationwide direct connect) HOWEVER, the minutes are low and the overage minutes are at 40 cents a piece. Their fair and felxible plans are nice as they are $5.00 per 100 minutes and the minutes are higher, but you don't get nationwide direct connect and your incoming calls are charged for so the higher minutes aren't THAT good compared to the free incoming plan.

Like I said.. unless you can get an unlimited plan, there is always something that will ultimately drive your bill up if you are not carefull.
Ahrenl

join:2004-10-26
North Andover, MA

Re: Duh, simple business.

I have a Cingular rollover family plan. My bill has been the exact same ($70's for two lines/phones) for the last year and a half. (I switched from Verizon then). Also, for the two phones we "purchased" they GAVE us $150's. And I live in the Northeast. Yes, what an unfair market. They'd have to pay me MORE for it to be cheaper.
grandpinaple

join:2006-01-03
New York, NY


edit:
July 11th, @12:17PM

What are you talking about?

Broadband prices are going down. You have all the DSL light deals now. Verizon upgrades its DSL light customers to a lower tier FIOS package when they upgrade those customers. Verizon's cheapest package is $35 per month for 5/2 in some places 10/2. That is only 5 dollars more than their DSL package which is 3/768. You have to realize the companies raise costs to keep up with inflation as well. $35 today is different from $35 tommorow, but maybe the same as $45. They also don't take into account the new customers coming over from dial up, which was more expensive if you had a second phone line.

oliphant
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edit:
July 11th, @12:22PM

$39.45 not $34.95

quote:
It notes the average price for cable modem service was $34.95 per month, and $35.38 for DSL.
Unless I'm reading it wrong...it says $39.45/mo is the cable average.

Also out of curiousity what cable operators have service for less than $40/mo? All of the majors I can think of which would constitute the vast majority of cable HSI subs are all over $40, typically $43 or $45 so there must be tons offering for less than $40? Who are they?

TK Junk Mail
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edit:
July 11th, @12:57PM

Re: $39.45 not $34.95

said by oliphant See Profile :

quote:
It notes the average price for cable modem service was $34.95 per month, and $35.38 for DSL.
Unless I'm reading it wrong...it says $39.45/mo is the cable average.

Also out of curiousity what cable operators have service for less than $40/mo? All of the majors I can think of which would constitute the vast majority of cable HSI subs are all over $40, typically $43 or $45 so there must be tons offering for less than $40? Who are they?
You are right. The study says avg cable price is $39.45, not the $34.95 listed in the BBR news summary(the news summary has now been corrected with the right price).

As for why it is less than $40, that would be because of the intro prices being factored into the equation and the pkg discounts being offered. One example, Comcast has been pushing its $33 for HSI, $33 for VOIP, & $33 for cable pkg aggressively.
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tsu

join:2001-08-17
Wheeling, IL

Re: $39.45 not $34.95

[...]intro prices being factored into the equation.

Very deceptive.

oliphant
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With the major Telcos offering sub $20 DSL and for longer periods of time (as their promos are often 12 months while cable is 3-6 months) I would think the average DSL price would be far less than $30. That is unless they factor in the POTS costs into the DSL price.
pabster

join:2001-12-09
Waterloo, IA

Re: $39.45 not $34.95

They have to factor in POTS costs. Very few areas have 'Naked' DSL. Here the POTS cost adds $35 right to the top.

oliphant
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edit:
July 11th, @03:34PM

Re: $39.45 not $34.95

Wonder then if they figured in non-CATV subscriber penalties which for the largest cable HSI provider runs the price up to $56 to $80 (depending on plan).

Considering the source data was "Cable TV Investor" I'd have to see more before taking this data on it's face as fact.