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Why Broadband Prices Haven't Decreased

Posted by CmdrTaco on from the someone-owns-boardwalk-and-parkplace dept.

pdragon04 writes "After a new technology is introduced to the market, there is usually a predictable decrease in price as it becomes more common. Laptops experienced precipitous price drops during the past decade. Digital cameras, personal computers, and computer chips all followed similar steep declines in price. Has the price of broadband Internet followed the same model? Shane Greenstein decided to look into it. "

2 of 336 comments (clear)

  1. Re:Nope by commodore64_love · · Score: 1, Flamebait

    Just realized something, if you adjust the prices to account for inflation (aka devaluation of dollar due to increased supply of the paper), these goods actually are cheaper today than in 2000:

    2000 - spent $350 for Win98 laptop. Today - spent [266] for Win7 laptop.
    2000 - spent $200 for TV. Today - spent [152] for TV.
    2000 - spent $300 for VCR. Today - spent [228] for DVR.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  2. Re:Why prices don't decrease by DerekLyons · · Score: 1, Flamebait

    The speed of evolution in Broadband technology prevents the bill from dropping.

    Yet somehow the faster speed of CPU evolution (Moore's "law") and hard drive evolution has allowed those things to become both cheaper and much more powerful.

    So? Apples and oranges. You might as well compare the speed of evolution in broadband technology to the sales of pink bubblegum - because it's just as relevant.
     

    And don't tell me that investing in a new fab or retooling an existing fab is cheap, 'cuz it ain't.

    Compared to upgrading a broadband network (which can include replacing miles of cable) while maintaining existing service... A new or retooled fab costs peanuts.