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
    anonymous coward, 11 Jul 2006 @ 1:06pm

    i switched from DSL to cable. If you factor in the speed of the connection, DSL is substantially more expensive.

    I have 10Mb down, 750Kb up for $50. With DSL, I only had 1.5Mb down and 256Kp up for about $40 (plus two phone lines).

    I switched to cable and Vonage and easily save $100/month and get a better Internet connection. One afternoon of downtime in a year. DSL would be down at least 1-2 days per month.

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