Thursday, August 25, 2005

 

Comcast: Predatory Pricing or Good Ol' Competition?

In Utah, if you live in a UTOPIA (muni FTTH) city, you can get 10 megabit symmetrical Internet service for $40 a month. Or you can get Comcast Internet service for $29.95. If you don't live in a UTOPIA city, Comcast Internet costs $45.95 a month. One thing is sure; Comcast can afford to lose money longer than UTOPIA. Link. Linky thanks to Jim Baller.

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Comments:
Such pricing certainly appears predatory. But, I don't think at $29.95 they are losing money (marginal costs are VERY low).

In fact, DSL could easily be offered under $15/month profitably, oh, wait, it is...

Of course, one could argue whether such an offering is really "broadband."

Rahul
 
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