The Unrepentant Individual

...just hanging around until Dec 21, 2012

March 3, 2006

Markets Beat Monopolies, Every Time

DSL Price War Helps Close Broadband Gap

Last year was the first in which telephone companies added more broadband Internet subscribers than their cable TV rivals did, according to a research report.

The largest DSL providers, which have been engaged in a price war that has slashed promotional prices as low as $13 a month, added 5.2 million subscribers in 2005, according to Leichtman Research Group’s analysis of company statements.

The major cable companies gained 4.4 million high-speed Internet subscribers last year, for a total of 24.3 million. That means cable retained a narrowing lead in total subscribers over the phone-line based DSL technology, or digital subscriber line, which had 18.5 million customers.

The numbers reflect the 20 largest broadband companies in the United States, with 42.8 million total subscribers and about 94 percent of the market. Bruce Leichtman, principal analyst at Leichtman Research, estimates that around 35 million people are still using dial-up access.

Now do people really think that this can’t work for education? You see a market emerge, and prices decrease while service improves, and suddenly things like broadband are accessible to the poor at reasonable rates. All without government enforcing a “right” to broadband.

And everyone thinks that education won’t benefit from a market.

Posted By: Brad Warbiany @ 11:54 pm || Permalink || Comments (1) || Trackback URL || Categories: Economics, Education, Internet, News, Technology

1 Comment

  1. The other side of the coin, also relevant to public education is that government has long acted to protect the monopoly enjoyed by cable television and local telephone companies in their respective markets. All to the detriment of consumers, which is what happens when government creates a monopoly.

    Comment by Doug — March 4, 2006 @ 8:07 am

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