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
    Eileen, 11 Jul 2006 @ 12:34pm


    Don't even get me started...

    First, AT&T offers special "promotional pricing" if you order over the internet. Fine... if you can get them to let you. Every time I tried to order DSL it would tell me "you need to call in order to make sure DSL is available". When I tried to get the internet pricing over the phone it was a no go. This has also happened to 3 other people that I have talked to.

    Additionally, I was lied to (by omission) by the sales staff in regards to what was REALLY the cheapest option. I finally had to threaten to hang up before she admitted that yes, I could get bare-bones phone service for $7/mo but it "really wasn't a good deal, I don't think you'll like it", oh and surprise, the cheapest phone service requires a $39 set-up fee and it COSTS EXTRA to get no long distance. yes, you heard me. It was cheaper to get 60 minutes a month of long distance than to pay the "fee to have long distance disabled". You've got to be f-ing kidding me. The also failed to mention that there is a $50 router available and ordered me the $80 for no reason since I ALREADY HAVE a wireless router. I had to do a ridiculous amount of threatening to get them to just order me the freaking lowest cost options, and I still think I got screwed. I'm paying $35/mo, just like everyone else. I am not planning on keeping them after this year.

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