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. icon
    bmac (profile), 11 Jul 2006 @ 2:44pm

    DSL vs Cable

    I just switched from Time/Warner RoadRunner to AT&T (SBC) DSL in East Arkansas. RR was $44.95/month. DSL is $12.99/month for the first 12 months, and $29.99 thereafter. And although you can tell it's slightly slower if you're downloading large files, it's not been a hindrance, and I use VPN to work from home, often remoting into servers, routers, etc. with no discernible difference in access speed.

    I won't go back to cable Internet at this point. Crappy customer service, always getting a busy signal on the tech support phone number, etc. has made a believer out of me. TW thinks they have a monopoly in West Tennessee and East Arkansas, but I believe DSL will overtake them as the telcos get more equipment into the field.

    On the DSL side, I've had 3 calls from AT&T verifying that my service is up and I have no problems. That's right: They called me. Very comforting compared to TW.

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