The Broadband Price War That Isn't
As much as the media, and probably consumers, would like to beleive, there's still no broadband price war. Not only is cable not cutting their prices, but neither is DSL really. From BroadbandReports:
Thanks largely to bundling, the broadband industry has become a consumer market where you need a lawyer and scientific calculator to determine if you're actually getting a good deal. Most of these articles on "price wars" simply aren't doing the math or reading the fine print.
The SBC $14.95 DSL deal prompted talk of a price-war with cable. Few mentioned that price didn't include the cost of a mandatory phone line (and associated fees). Fewer still mentioned it was a 12 month, new-customer only on-line promotion. Even SBC investors, concerned they were giving away the store, had to be soothed by SBC chief Ed Whitacre that this was PR aimed at dial-up laggards.
At least the bells have been lowering prices over the past several years. Looking for cable price-cuts in this "price war" outside of promotional deals? There aren't any.
In fact, take a good look at the actual detail surrounding the recent Comcast speed increases. If you don't subscribe to Comcast cable service, you'll pay $57.95 for 4Mbps downstream service. The new 8Mbps tier for those who say - have satellite TV - will cost you $77.95. Comcast actually raised prices for the same speeds in some instances.
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