The Fake Broadband Price War

from the it-doesn't-really-exist dept

One of the favorite lines trotted out by the telcos and their think tanks concerning the lack of competition in the telco world is that there obviously is competition, otherwise how would you explain the fact that DSL prices keep getting cheaper. The problem is that this is false. While it's true that many DSL providers now offer introductory, time-limited, promotional pricing, the price can go up quite a bit once the promotion ends. Not only that, but since they refuse to offer you DSL without a phone line, you're going to end up paying a lot more than the promotional rate no matter what. When someone from a think tank made the claim recently that DSL prices are now only $18/month, I asked to see the $18 bill. Not surprisingly, there was no response -- because such a bill doesn't exist. Once the forced bundles come in and the various fees, you're talking much higher prices. Now, there's a new study that gives actual numbers noting there is no real price war in broadband. The true price of DSL remains around $35 -- just slightly lower than cable broadband. Don't let the introductory prices, hidden fees and required bundles fool you. There isn't enough competition in the broadband space -- which is just the way the telcos and the FCC like it.

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  1. identicon
    Viralis, 7 Jan 2007 @ 1:56pm

    god you all no nothing

    your speed is shared between lets say 20 people if your broadband service has 20 people on the same switch as yourself, that is what is ment by the contention ratio mine is 20:1 so 20 people for 1 switch so when those 20 people are on im never going to reach my maximum speed, all broadband speed tests should be done at night say between 4-and 5 am, basically during the hours that absolutly nobody on the same switch as you are online

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