The Broadband Price War Erupts with Price Slashing
Posted 09/03/08 at 12:06:13 PM | by Paul Lilly
Perhaps a bad economy is to blame, or maybe consumers are more concerned with getting outside this summer than going online. But whatever the reason, broadband operators are struggling to sign up new customers. Twenty of the largest cable operators and phone companies in the U.S. managed to snag just 887,000 new subscribers in Q2 '08, and according to Leichtman Research Group, the comparatively anemic numbers mark the lowest level of growth seen in the past seven years.
That's good news for consumers, as the lower than expected growth might have sparked a broadband price war. Verizon has said it offer six months of free DSL service to new customers who agree to a one year commitment and also grab a landline package. By taking advantage of the promotion, consumers can pay as little as $45 per month for high-speed DSL and phone service, compared to $65 per month.
But Verizon isn't the only one looking to entice new customers, and AT&T has kicked off a new promotion that guarantees customers its current pricing for two years. Prices range from $20 to $55.
As the broadband market continues to saturate, cable companies could feel the pinch too. Comcast added 278,000 high-speed internet subscribers in Q2, which represents 18 percent fewer customers than the company signed one year ago.
Image Credit: Flickr angermann
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This price war needs to hit
Submitted by Keith E. Whisman on Wed, 2008-09-03 20:17
This price war needs to hit Phoenix, Arizona.
Maybe they are getting less
Submitted by knexkid on Wed, 2008-09-03 14:11
Maybe they are getting less new customers because most everyone who can get these services, already have it! They can't expect a bunch of new customers when there aren't that many potential customers to begin with. Maybe they should expand their area so people like me (live in the north woods of WI) don't have to have satellite internet to be able so surf the web.
Submitted by urban303 on Wed, 2008-09-03 14:09
...guees I'm now a Com-castaway? Greasy businesses will not see my $$$
I find it amazing how they can block competition out of certain areas (i.e. Verizon FIOS), I suppose that's what happens when a company gets TOO much power.
Submitted by statewd on Wed, 2008-09-03 13:41
[quote]Comcast added 278,000 high-speed internet subscribers in Q2, which
represents 18 percent fewer customers than the company signed one year
ago.[/quote]Is it 18% lower in 2008 Q2 versus 2007 Q2. Or are you saying it is 18% lower in 2008 Q2 versus LAST year (12 months)?
Submitted by Asterixx on Wed, 2008-09-03 13:01
Nunc est bibendum!
Funny, they complain of "market saturation", yet they ignore a potentially huge market just outside city limits as rural (and even some suburban) residents beg for a service nobody could be bothered offering them. Maybe now the "easy money" of urban high speed internet is gone they'll expand into other untapped markets...
And comcrap says they have
Submitted by gatorXXX on Wed, 2008-09-03 12:33
And comcrap says they have to put a cap on bandwidth limits....even with much fewer than expected signups. get a clue comcrap!
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