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
    Someone in San Diego, 11 Jul 2006 @ 4:26pm

    Cox Communications in San Diego

    Cox offers 3 different levels of service in SD.

    Premier Service (9mbps/1mbps) $23.20 w/ Cox Combo $44.95 w/ Digital Cable & Telephone $54.95

    Preferred Service (6mbps/512kbps) $16.20 w/ Cox Combo $29.95 w/ Digital Cable & Telephone $39.95 w/ Cable or Telephone $49.95

    Value Service (1.5mbps/256kbps) $24.95

    There are a couple of limited time offers that lower the cost for the first 4 months. I tried cut some money off my bill and they transfered me to a "specialist". He tried up and down to talk me out of dropping services and to keep the combo. i had him on the phone adding up different posibilities and they were about $10 cheaper. I kept the damned bundle for now but am desperatley seeking alternate service. I curently pay $140 for Digital Telephone, Preferred Service internet, Digital Cable w/ 3 aditional packages, HD Channels, HBO, Starz and a HD-DVR.

    I inquired Comcast, but they do not service my area. I also inquired SBC, but they said that I have to call in to speak with a rep...i've heard that one before!

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