wasting bandwidth since 1999

Looking For Competition

In their current propaganda campaign, the big telecoms want you to believe that a net neutrality bill is unnecessary because there is plenty of competition for broadband service in the US.

To back them up, the ads keep repeating FCC statistics claiming that 60% of all zip codes in the country have four or more choices. Numbers completely debunked by a report from the Government Accountability Office.

But a new market research study points up just how bad the lack of competition is for consumers.

The new Kagan study shows just how un-competitive the broadband market is. Here’s the title of the study: “Cable Modem Vs. DSL: Rivals Side-Step Big Price Wars So Far.”

Not only are there only two “choices,” in supplier, there’s little evidence of competition on one factor that really counts — price. In their July 6 Insights email newsletter, Kagan puts it fairly simply: “Though the battle for broadband access subscribers is intense, there’s no screaming price war between cable TV and telcos, and Kagan Research doesn’t expect one in the foreseeable future.”

So much for choice.

net neutrality, big telecom, competition

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1 Comment

  1. Diana K.

    Perhaps an example would bolster your argument. I am currently residing at my summer home on the Eastern Shore of Virginia. This area is rural, 50-60 miles from the nearest metropolitan area (Norfolk), and the closest town has a population of less than 500. What are my choices for getting online? There’s dialup service with one local company, which is what I use. If I use AOL or Earthlink, the phone numbers require toll charges, which add up fast. For broadband, there’s no cable company with a line to my neighborhood, so cable is out. I can get a satellite feed (we use DirecTV) or Verizon DSL. That’s the extent of the competition around here. Even that is better than it used to be, before Verizon expanded their DSL service and began to lower the prices to grab business. Once I retire and I’m spending more time here, I’m hoping to be able to afford the DSL. But the choices for broadband are not wide.

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