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Broadband Usage Up 42% In The U.S. In 2003
Kickassthegreat writes "As reported here by Reuters, broadband usage in the U.S. jumped 42 percent in 2003 as compared to 2002. As more people sign on to high-speed access, how long will it be before we start seeing the cable companies (such as Comcast) start dropping their prices to levels which compete directly with dial-up?"
Never. Just like CDs are still more expensive than tapes.
the RIAA drops the prices on CD's to compete directly with cassette tapes.
Have you been touched by his noodly appendage?
You forgot the golden rule of monopolies. The more customers, the higher the prices!
"Well Mr. Jones, I know that people are signing up in droves, and many of our markets are over-capacity which is requiring us to upgrade our local services. But I thought it would be nice if we cut the price 75% to compete with AOL's dial-up."
Not in this lifetime, I'm thinking.
"As more people sign on to high-speed access, how long will it be before we start seeing the cable companies (such as Comcast) start dropping their prices to levels which compete directly with dial-up?"
Why would they? More people are signing up to these cable companies (such as Comcast) daily. Why compete with dial-up when people are migrating from dialup?
how long will it be before we start seeing the cable companies (such as Comcast) start dropping their prices to levels which compete directly with dial-up?"
When the companies stop seeing 43% growth. People obviously like the broadband at current prices. If you have a hot product, why lower the price? When growth stagnates, then the companies will start gettng aggressive -- adding services or reducing prices to either make new customers or steal customers from rivals.
In the long run, doubt that broadband will ever be the same price as dial-up because it both costs more and is more valuable to customers.
Two wrongs don't make a right, but three lefts do.
There's no pressure for Comcast et al to lower prices. Right now, they simply need to show up and in many areas (like mine) DSL isn't available.
It'll happen, as the market saturates and competition finds a way to penetrate the markets. Also, as additional services come up (perhaps like Comcast offering VOIP) they'll probably come up with package deals to make the combo very attractive.
blenderking.com over 50,000 blenders can't be wrong
As technology develops, DSL will be available over longer and longer distances. Currently, you can manage a 192kb DSL line over about 21000 feet, if I am not mistaken (which I might be, but these numbers feel about right). I wouldn't be surprised to see that number double in the next few years. Also, as WiFi stuff gets so ridiculously cheap, all that would be necessary would be to put a repeater on every few power poles and voila, rural internet access.
WHen will broadband companies truly serve the populace by providing broadband capability to all, not just the city folk?
Probably when they won't have to lose excessive amounts of money to lay the cable to do it. I think your only realistic hope way out of town is to go with satellite or long range WiFi service.
If you want all the services of the city, why don't you move to the city? I grew up in a rural area, and we just understood that it's a tradeoff. You don't get curbs and gutters, sewers, city water supplies, cable, etc., but you do get lower crime rates, less pollution, and a better sense of community.
"I have never let my schooling interfere with my education." - Mark Twain
It all depends how much competition the government will allow amongst broadband providers. Not so much DSL and Cable which already are competetors, but allowing or requiring cable to allow other companies in.
Plus you have other technologies trying to become involved such as broadband over electric lines. Anything that may actually drive consumers to another company will drive prices more competitively, otherwise we're looking at high prices for a while.
I will shred my adversaries. Pull their eyes out just enough to turn them towards their mewing, mutilated faces. Illyria
In Belgium the percentage of people who have ADSL or cable is pretty high, compared to dialup. At this moment 15,4% marketpenetration for ADSL. 4th world wide.
The main reason might be the monopoly position of Belgacom, the main Telecomoperator. They dictate prices between cariers and abuse their monopoly in every way they like.
Because of that there are so many ADSL and cable subscribers. So here is the proove that a monopoly IS good for the customer. Uh, wait. That can't be right.
Don't fight for your country, if your country does not fight for you.
Look, the whole POINT is to make money. Why else would these companies exist? Philanthropy? How do YOU make a living? You're right when you say that they won't cut prices without reason. That's what competition in a free market is supposed to control; when some other company provides a comparable service at a lower price you'll see them cut prices. Unfortunately, because of the way cable is regulated in my state, cable companies enjoy vitual monopolies in cable service but DSL does put pressure on their ISP business.
The problem with cable ISP's and oil companies isn't greed, it's lack of real competition.
I have mod points. The reign of terror begins now.
Wait... you mean you don't see lower gas prices when the price of oil drops?
Uhhhh. Yeah you do. You just don't see it the same damn day. It takes time to get oil through refineries and pushed out to individual stations. But the price certainly does (and will again) go down.
This isn't insightful, it's wrong. The people here suggesting prices won't go down because they're already getting 43% growth are correct.
Uhhhh. Yeah you do. You just don't see it the same damn day. It takes time to get oil through refineries and pushed out to individual stations. But the price certainly does (and will again) go down.
Then why is it that the minute the oil prices rise, the gas stations immediately raise their prices ( as if the cost of the fuel in their tanks went up instantly ).
UPS Sucks