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Problems With Broadband Pricing
from the price-gauging dept
Interesting article at PC Magazine taking on the issue of broadband price gauging. He points out that, unlike with dialup, you generally only have a very few choices for high speed internet access to your home. The providers (usually cable or telephone companies) are doing everything they can to prop up prices - even though, like most digital things, the price should start to drop after a certain point. On top of that, MSN and AOL are trying to get people to pay more money for additional services that really aren't necessary - but many consumers think they need AOL or MSN on top of their cable/DSL connection in order to reach the internet. The writer agrees that, for some people, some of the services offered by AOL or MSN might be useful, but not on top of the always rising price of a high speed internet connection. He's hoping that more competition comes to the broadband world and forces down prices. Some of that seems to be happening already, as DSL providers have been dropping their prices to compete with cable - but it remains to be seen if there's really enough competition in the marketplace.
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High-Speed Cable Prices On The Rise
I've had a high-speed cable modem connection for two years now through Comcast. I love it, but the price really starting to annoy me. The price started at $32.00, and now it is $54.00. That's about a 20% increase a year. No other inflation index I know of has risen as fast. What's more, no additional services have been added for the extra money.
I honestly believe this is happening because Comcast has a franchise lock on my neck of the woods. DSL com-pop offices are spread out too far (I fall short by 1000 feet for one and 1265 feet for another). Hence, I am at the mercy of Comcast unless I want to revert to dial-up. This is is beginning to start to stink like a scam. They have increased their subscriber base by around 65% in those two years since I joined, and it seems like they are milking the cash cow for all it is worth. I am beginning to doubt the value of my broadband service.
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Re: High-Speed Cable Prices On The Rise
Yeah. I'm in the exact same situation, actually, with my home connection. I now can get DSL (finally!), but we're so far from the CO it's not worth it. I'm still waiting for more real competition - and I think (eventually) Comcast will find they're shooting themselves in the foot when other, better, cheaper options come along and lots of people like you and me bolt.
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