A year-and-a-half ago, pricing of DSL and cable modem service was roughly the same. But over the past year, the phone companies have launched an aggressive assault by dropping prices. At the end of 2005, the average price of DSL service was about $32 per month, roughly $9 less than cable, according to research firm IDC. AT&T has twice lowered the price of its DSL service and now offers its 1.5Mbps service for $12.99 for the first year.
Kinda calls into question the oligopoly theory of broadband services that proponents of “net neutrality” have been pitching doesn’t it?
Competition does not have to be perfect or abundant for consumers to benefit.
The first comment at Slashdot is priceless:
These low prices are only to gain market share
Well, duh. Isn’t that how all pricing works?