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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.
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.
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
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.
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