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
    ScroodByHughes, 11 Jul 2006 @ 1:44pm

    Jealous in the country

    I live just far enough outside of the city so that I don't have DSL or Cable as an option. I had to either put up with cranky dialup over noisy lines (miserable connection speeds) or get satellite. Okay, I'll pay the obscene costs for the equipment AND the installation fees, I need broadband to get anything done. So it works fine for two years, then craps out. Despite the horror stories I read on the internet about the dismal customer service, I try and get my satellite fixed.

    Well, you can imagine how much fun I'm having. My satellite has been out but I have still paid for two months of service ($60/month) and for a technician to come out and repoint the dish ($120) and once again the modem is out. Now I am fighting with Hughes to get the technician to come out and ACTUALLY troubleshoot...at which point I'll probably be told that I need to purchase a new modem (care to pony up another $400-$600, sucker??)

    My point is, don't complain about DSL or Cable when at least you **have** a choice. I either dance with the devil or sit out in the cold.

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