Slow broadband is getting cheaper

Here is a very short article about the falling price of DSL service in the U.S. Usually, when prices fall, it is a possible indicator that people are not buying enough of whatever is for sale, or that they supplier has "too much" of something. In the case of DSL, both is probably true. The phone companies have been investing heavily in upgrading their local phone systems to handle DSL, but with limited success, apparently, or they would not be cutting prices.

Part of the problem is that the cable companies beat them to the punch several years ago. The cable companies got an early start not because they really believed the Internet thing was going to catch on, but because digital cable systems let them sell a lot more TV. It really did not cost much (relatively) to build systems that could also deliver Internet service. So a majority of broadband users in the U.S. have cable modem service rather than DSL. And it is often difficult to get your computer working with a new ISP, so most people tend to want to avoid switching unless there is a really compelling reason. And a $4.27 price differential is not enough, it seems, to get people to switch from cable to DSL.

Anedotally, almost everywhere I visit in the U.S., people tell me that cable modem service is faster, more reliable, and tends to have better service than DSL provided by the phone companies.

But the sad news is in the last paragraph of the article. While many communities are happy just to any broadband Internet service delivered over slow, last century copper systems, broadband prices in Japan also continue to drop. Service providers there are offering 100 megabit fiber service for $25.90 a month--less than we are paying for copper broadband 100-200 times slower.

Technology News:

Community news and projects: