Broadband Usage Up 42% In The U.S. In 2003 322
Kickassthegreat writes "As reported here by Reuters, broadband usage in the U.S. jumped 42 percent in 2003 as compared to 2002. As more people sign on to high-speed access, how long will it be before we start seeing the cable companies (such as Comcast) start dropping their prices to levels which compete directly with dial-up?"
Answer (Score:5, Insightful)
Re:Answer (Score:5, Funny)
Re:Answer--NOT TRUE (Score:2)
Re:Answer (Score:2)
Stupid Comcast.
Re:Answer (Score:3, Insightful)
Re:Answer (Score:2, Insightful)
Re:Answer (Score:4, Funny)
Re:Answer (Score:2)
Re:Answer (Score:2)
They have the taste of money now... They're addicted.
Re:Answer (Score:2)
Eventually, the majority of dial-up providers are going to go out of business as new houses are built without POTS and people start ditching their old telephone service. Everyone will be switching over to broadband and cellular, if not something else, maybe VoIP.
In either case...at some point, the demand for dial-up Internet will be so small, its price will skyrocket to much higher than broadband.
Re:Answer (Score:2)
Re:Answer (Score:5, Interesting)
Re:Answer (Score:3, Insightful)
The infrastructure costs for DSL may be a bit higher initially, but transport costs for data are a lot lower.
In fact, where I live, the one and only problem is that you cannot get DSL without renting a fully functional phone line, but in usage DSL is a lot cheaper then using the phone, to the point that you can get free dsl connections with pre-paid data transfer (which will be a lot cheaper then using a 'free' isp with a charged dialup number and such), upto 8mbi
Re:Answer (Score:5, Insightful)
I think someone who is using that much bandwidth should pay a much higher rate. Because people like that are going to drive prices up for all of us. Just like the bad drivers pay more on car insurance.
Some people think that just because they are given the blank check (no caps set) they should be able to take as much as they wanted. That's what these two fatties [showmenews.com] thought too. Take as much as you want, but when other people can't get their fair share, you're taking too much.
Re:Answer (Score:2)
Value varies from ISP to ISP though. Some ISP's offer shaped after limit or prioritised bandwidth (unlimited) plans, some offer free peering exchange traffic in the same state* and some just offer you a plain net connection. Have a
Re:Answer (Score:2)
Ditto for Canada, but you do need to figure in the cost of the line. Unlimited internet access over dial up with a second phone line is significantly more expensive than broadband.
Re:Answer (Score:4, Interesting)
Mind you, in Canada the prices for broadband are pretty bloody cheap, so maybe that's why it costs less than unlimited dial-up and a second line. For those of you who live in that country below us and aren't familiar with the prices, Telus customers enjoy ADSL for as little as $28 USD/month (actually, less than $19 USD/month for the first year). When I moved down to Florida (I'm a snowbird), I was shocked at the Comcast prices -- so I shopped around, and BellSouth, Speakeasy, and all the others had the same price!
I wonder what sort of market factors are going on behind this huge price difference. I always thought steep competition lowers prices, but in Canada we have only one cable Internet provider and maybe two DSL providers. And low prices.
Probably around the same time... (Score:5, Insightful)
Re:Probably around the same time... (Score:2)
Re:Probably around the same time... (Score:2, Funny)
That's easy - all those evil, pirating scumbags who share their connections over WiFi.
What is in a name? (Score:5, Interesting)
If they raised their standards perhaps we would see quite a different deployment figure.
Re:What is in a name? (Score:3, Informative)
Re:What is in a name? (Score:3, Interesting)
OK, so you're comparing high speed Internet access in a single city in Tokyo to broadband speeds on average over 9 million square kilometers of the United States? That seems unfair. New York City could undergo the same kind of
Haha (Score:5, Insightful)
Re:Haha (Score:3, Insightful)
Re:Haha (Score:5, Insightful)
Right now I can run to Radio Shack and pick up a $3 splitter and $5 of CATV cable and let my fiance's little brother watch TV in his own room in about a half hour. Can't do that with satellite!
Digital Cable (Score:2)
Re:Haha (Score:4, Informative)
My current dish has two horns, one for each satellite that it tracks (not one per TV as you state). Later this month, I'm getting a free upgrade to a dish with three horns so that I can receive local channels which are broadcast from a different satellite than the two I'm currently tracking. The dish is the exact same size and looks almost identical. It's not like I'm suddenly getting a 50%-bigger dish on the outside of my house.
sattelite TV receivers built in
Here's the deal: analog cable is dying, and dying quickly. So let's ask a parallel question: what TV's have digital cable receivers built in?
you're not charged an extra fee for hooking up another TV yourself
Right now, Dish Network will install up to three extra receivers for an additional $5 per month. How much do you pay for three extra digital cable receivers?
Right now I can run to Radio Shack and pick up a $3 splitter and $5 of CATV cable and let my fiance's little brother watch TV in his own room in about a half hour.
You're right - today. The same probably won't be true next year. For example, I don't think I even have the option of getting analog cable now even if I wanted it. My choices are digital cable and digital satellite. Both have similar advantages and disadvantages, but the latter is much cheaper for the viewing package I want.
Re:Haha (Score:3, Informative)
I live in a small town (pop. ~25,000) in Nebraska. Somehow I don't think we're on the forefront of technology, although we do have wonderful, cheap DSL service.
I don't want to have to put a receiver that's the size of a DVD player when I bought these TVs for their small footprint.
Check this [dishnetwork.com] out. It's a dual-tuner receiver that drives two televisions, with two RF remote controls that have a pretty long range. M
Good Point But... (Score:5, Interesting)
What do you think your digital cable box with 1000's of channels does all damn day with that bandwidth? Set up spam from China? Wouldn't suprise me much to be honest.
Dialup sucks ass. It's only used by those who can't get Fiber To The County or so, for the most part. I remember one customer yelling at me years ago because a sales rep said I'd go out there and install a cable modem and internet setup even though he lived some 10 miles from the nearest fiber optic node and didnt even have hard line ran near his zip code. He had a phone though. Imagine the trouble I'd got in for suggesting that he go through a competitor to get dialup.
Thats just a small testament to how lucrative that market is. They need every penny they can get and there is a huge job market for fiber splicers and installers alike. Problems only arise when there is only one company offering broadband in a given location. For years in mine we saw ads like "Time Warner Cable - Your Only Choice" with a big fuckin smile across it on bus stops and billboards.
There are of course the huge issues of how that bandwidth is used. Ideally we wouldn't NEED all that expensive head end multiplexing with GW/hr power consumption if there was not:
It seems here we find the core of many many issues present in today's communications' agendas.
Re:Good Point But... (Score:2)
Problems only arise when there is only one company offering broadband in a given location.
And that often seems to be the case.
I remember years ago when cable infrastructure was being put in and cable companies would negotiate exclusive contracts with communities to provide cable service.
On the surface, it was a good and necessary thing: you didn't want multiple cable companies building parallel lines all over the place (remember the 19th century railroads building tracks parallel to one another?) and t
Lower prices ? (Score:2, Insightful)
yeah just like we see lower prices at the petrol pumps when the price of oil drops
companies are so desperate to make money, you really think they will drop the price when they can increase ROI for no extra investment at all !
never underestimate greed, especially in USA
Re:Lower prices ? (Score:4, Insightful)
The problem with cable ISP's and oil companies isn't greed, it's lack of real competition.
Re:Lower prices ? (Score:2)
The cost of entry into the broadband market is extremely high, meaning that the big markets are going to have the options first, because the ROI is there. Unless I take action to create a township-wide FTTH system, I'll be using Comcast until I move somewhere else, even though their service sucks and their Macintosh support is non-existant.
Re:Lower prices ? (Score:2)
I once lived in a market with two cable companies, both which provided high speed internet service to my town. It was awesome having a choice. Alas, Boston was one of the few markets that have this available. (RCN and ComCast)
Competition is beautiful. That's why I love the movement away from landlines and towards cellular phones. Cellular companies aren't regulated all to hell like the local telcos are. I can have verizon, cingular, t-mobile, sprint, at&t... its awesome having a choice. and
Re:Lower prices ? (Score:4, Insightful)
Uhhhh. Yeah you do. You just don't see it the same damn day. It takes time to get oil through refineries and pushed out to individual stations. But the price certainly does (and will again) go down.
This isn't insightful, it's wrong. The people here suggesting prices won't go down because they're already getting 43% growth are correct.
Re:Lower prices ? (Score:5, Insightful)
Uhhhh. Yeah you do. You just don't see it the same damn day. It takes time to get oil through refineries and pushed out to individual stations. But the price certainly does (and will again) go down.
Then why is it that the minute the oil prices rise, the gas stations immediately raise their prices ( as if the cost of the fuel in their tanks went up instantly ).
Re:Lower prices ? (Score:2)
Why doesn't this happen? Becau
How long before greed sets in you mean.... (Score:5, Interesting)
Why? (Score:5, Insightful)
"Well Mr. Jones, I know that people are signing up in droves, and many of our markets are over-capacity which is requiring us to upgrade our local services. But I thought it would be nice if we cut the price 75% to compete with AOL's dial-up."
Not in this lifetime, I'm thinking.
Re:Why? (Score:3, Insightful)
I guess the poster hasnt heard of supply and demand.
Comcast's Prices (Score:4, Interesting)
If you think broadband is expensive, look at the rest of your cable bill.
Re:Comcast's Prices (Score:4, Interesting)
Re:Comcast's Prices (Score:2)
Cable prices (Score:5, Informative)
2nd phone line: $20-$30/month
Year subscription to aol: $20/month (if paid in one lump sum $25ish otherwise)
Total: $40-$55/month connection slow (22.x-56k/s)
Cable Internet: $45/month (after entry rates)
Total cost: $45/month (initial setup may cost about $100) speed: Great for home (on average 200-350k/s)
As more people need the internet in a home and as the number of computers increase in the same home, the cost of cable is much better than the cost of dialup.
Re:Cable prices (Score:2)
its like arguing with a 5 year old.... tell them it cost money and to ask you again when they are willing to spend more on internet access.
Re:Comcast's Prices (Score:5, Interesting)
Check it out for yourself
Re:Comcast's Prices (Score:4, Informative)
There was a news story about a year or 2 back about a guy that wanted Cable Internet, but not TV. The tech forgot to put in the filter, and said he'd be back in a few weeks to do it.
The guy wound up getting fined and brought to court for "stealing cable." It took MONTHS and a lot of lawyer fees to get it rectified.
I wish I still had the link to the story. But I reformatted my PC since then.
In any case, it's possible to filter it out. It just depends what kind of person your technician is that sets you up.
I must have missed my econ 101 class (Score:4, Insightful)
Why would they? More people are signing up to these cable companies (such as Comcast) daily. Why compete with dial-up when people are migrating from dialup?
I took Econ 101 (or similar) (Score:2)
You may drop prices when there's heavy sign-ups if you're about to hit the "mass market" and is currently scratching the surface. Here I know many people have changed to broadband + cell phone (or just cell phone), no landline. With VoIP traditional dial-up might be obsolete.
The point is, if you can drop prices to compete with dial-up, you're suddenly also reaching a market that isn't really that interested in actually *using* t
Holy crapping crickets (Score:5, Interesting)
I've had three broadband connections (that I've actually payed for). DSL at home in NJ which has good pings but wasn't high bandwidth, Time Warner RR cable in Rochester which was pretty good in both respects, and now Comcast in Boston. If someone had told me in advance that my Comcast connection would be 9Mbits/second I'd be less irritated with their absurd fees.
Damn bastards usually want $60 a month plus all kinds of installation fees and shit. Fortunately I'm getting it for $20 a month for 3 months, and that's as long as I need it. But in the end their customer service still blows chunks.
What gets me is that in different regions around the US the same service can vary in price by $30 dollars. DSL in some places is $30 a month and in others it can go as high as $60, for the same speed! And I'm not even referring to people who live out in the boonies who may have to pay a premium which is somewhat understandable.
No different than gasoline prices (Score:2, Insightful)
Re:No different than gasoline prices (Score:4, Informative)
There isn't competition not because nobody is interested in competing, but because that is how the "utility" is regulated. Just like there is Verizon or nothing for telephone here. Oh, and Verizon hasn't decided to run DSL out to my area since we're too far from the CO, even though we are the largest town in the county.
So, since Adelphia is the only major high-speed player in this market, they are setting the price.
Re:Holy crapping crickets (Score:3, Funny)
Damn if I know...
Damn bastards...
Thank you, Andrew Dice Clay, for commenting on Comcast's service.
How long to dropping prices... (Score:5, Insightful)
When the companies stop seeing 43% growth. People obviously like the broadband at current prices. If you have a hot product, why lower the price? When growth stagnates, then the companies will start gettng aggressive -- adding services or reducing prices to either make new customers or steal customers from rivals.
In the long run, doubt that broadband will ever be the same price as dial-up because it both costs more and is more valuable to customers.
Pricing (Score:3, Insightful)
It'll happen, as the market saturates and competition finds a way to penetrate the markets. Also, as additional services come up (perhaps like Comcast offering VOIP) they'll probably come up with package deals to make the combo very attractive.
A long time... (Score:3, Insightful)
The only thing that will drive down prices is direct competition and, as I understand it, cable companies don't have a great deal of overlap. Now, if you were able to pick from half a dozen plus companies to provide broadband connectivity to your home (just as you're able to pick literally dozens of companies to provide narrowband connectivity to your home), then you'd have some active competition between companies, which would lead lower prices. But in a market where you're options are limited to one, two, maybe three companies tops then you're unlikely to see any really aggressive pricing.
And that's before you even start talking about what sort of value people attach to having broadband. If 19 out of 20 people have an expectation that broadband will cost $40/month then that's what it will cost. The fact that the last person in that group wouldn't pay more than $35/month for the service is irrelevant.
The Rural Community is scorned (Score:2, Insightful)
WHen will broadband companies truly serve the populace by providing broadband capability to all, not just the city folk?
Re:The Rural Community is scorned (Score:2, Insightful)
Re:The Rural Community is scorned (Score:5, Insightful)
Probably when they won't have to lose excessive amounts of money to lay the cable to do it. I think your only realistic hope way out of town is to go with satellite or long range WiFi service.
If you want all the services of the city, why don't you move to the city? I grew up in a rural area, and we just understood that it's a tradeoff. You don't get curbs and gutters, sewers, city water supplies, cable, etc., but you do get lower crime rates, less pollution, and a better sense of community.
Re:The Rural Community is scorned (Score:2)
I'm planning on doing this for my suburban township and giggling as Comcast craps themselves watching everyone switch to a cheaper, better service. Internet access should be like public transportation; easily available at a reasonable pri
Re:The Rural Community is scorned (Score:2)
When they find a cheaper way of installing the infrastructure?
Laying cable isn't cheap, especially when you don't have a lot of costumers per mile of cable. Heck, out my way Adelphia will gladly install cable to most anyone, but they charge between $17,000 and $21,000 per mile of cable to install it (hey, they are inflating this value, badly, but even if they charged reasonable rates
with a 42% jump in the last year (Score:5, Interesting)
Rural Areas will get broadband (Score:3, Insightful)
Right now I'm fine (Score:2)
Aha! (Score:4, Funny)
So that's what the question was!
'By how many percentile points will US Broadband usage increase in 2003?'
Not just in the US (Score:2)
I would have thought (Score:2, Insightful)
Drop their prices?!! (Score:5, Interesting)
Cable companies will never drop their prices until we start seeing small neighborhood WiFi ISPs as described by Bob Cringely in his past two PBS columns [pbs.org]. I've thought about this for a few years now but, alas, I'm no entrepreneur.
But drop their prices to compete with dial-up? They don't even need to drop their prices to compete with DSL. Where I live, Cablevision gives me speeds of 5 Mbps down and 900 kbps up for $40/mo (with TV service; $50/mo a la carte). Verizon DSL is $50/mo and the best speed would be 625 kbps down. Cablevision could raise their price to $60, $70 per month; you name it; and my only alternative would be a dog slow DSL or dial-up connection.
I'm hooked on the fat pipe and they know it.
Lucky us... (Score:2)
Australia, the Broadband backwater [news.com.au]
Blah (Score:2, Insightful)
As more people sign on to high-speed access, how long will it be before we start seeing the cable companies (such as Comcast) start dropping their prices to levels which compete directly with dial-up?
Perhaps when the growth rate slows down? Seems like they don't have much to gain at the moment by dropping their prices. Of course, by the time their growth rate slows, they might have killed off all of their dial-up competitors.
Competition (Score:3, Insightful)
Plus you have other technologies trying to become involved such as broadband over electric lines. Anything that may actually drive consumers to another company will drive prices more competitively, otherwise we're looking at high prices for a while.
Lower prices, better service (Score:4, Informative)
Both DSL and Cable have been increasing their bandwidth to compete with each other, Cable just changed to 5mbit/s, DSL is 4mbit/s. Pricing has remained relatively flat, about $40can/month for both services. However recently Bell has been forced to share their lines, as a result, 4mbit DSL can be found for as low as $30/month.
Comment removed (Score:3, Insightful)
In Canada.... (Score:2)
Re:In Canada.... (Score:2)
Re:In Canada.... (Score:2)
Why will they drop prices (Score:3, Informative)
It's more likely that broadband companies will try to takeover other broadband companies or big media companies(Comcast/Disney). To increase revenue, they will need to bundle services. Maybe they'll start offering VoIP phone services at less than what the phone company charges. If you paid 55$ for your cable internet service and 55$ for your phone service, they'll sell you a "bundle": internet service + phone service at 90$.
In my neck of the woods... (Score:5, Interesting)
In the years between the Road Runner roll out and the start of DSL roll-out, everyone that wanted broadband signed up for a cable modem. So (very) recently, Verizon started trying to roll out DSL and guess what; most of their potential market no longer needed their service, as their Cable modem was great. The residential DSL around here seems to have taken the lower bandwidth, lower price and cable, but still faster than dial-up approach.
Where as Time Warner only needed to announce they could deliver broadband to get potential customers (literally) calling them begging for service, DSL providers are begging for customers to sign up.
DSL is dropping prices (and bandwith.) Cable just raised their rates ($5) and doubled the speed of their pipe and modem connections.
Ma' Bell missed the boat big time. The slashdot summary talks about lowering rates. That's only the ugly step-sister. Cable prices (and service) are going up where I live.
-Pete
It already happens (Score:2)
At least here, you can get 512Kbps/128Kbps residential DSL for us$21/month.
Duh?
Comcast lowers prices/Brooklyn Bridge going cheap (Score:3, Interesting)
My other problem with Comcast is their spotty CS. We here in Connecticut just went through a weekend of 50% packet losses and unexplained disconnects. Calls to Comcast resulted in suggestions to power cycle my modem. The problem was obviouisly my fault even though the top thread over at broadbandreports.com was about widespread problems in my state. The patronizing ignorance of most of their alleges techs was astounding.
Infrastructure costs and value-added service... (Score:5, Interesting)
Infrastructure costs to the ISP are several times higher for cable than dialup or DSL. Also, there's value to the customer in providing faster connections.
That said, after watching my third web host lose data for me (yes, they said they did daily backups and I believed them) I decided to host my own domain, pitched my cable modem and found a provider that gave me a 768k SDSL pipe for the same price as my cable modem.
Comcast's pipe is four times as fast downstream but my pipe is considerably faster upstream - fast enough for me to host my own web and mail and pitch the web host. My DSL provider gives me a synchronous connection for $45 a month and doesn't care if I run a server as long as I don't exceed his rather generous bandwidth allocation. For me it was a win-win situation.
If the market will bear higher prices I guess it's reasonable to expect people to charge higher prices. Sad, but true.
Compete with dialup? (Score:2)
Wow, looks like I'm better off :) (Score:2, Informative)
US broadband vs Swedish (Score:4, Interesting)
Re:US broadband vs Swedish (Score:3, Insightful)
Nice try, but Japan has _density_ which means economics of scale, thus high bandwidth is cheap and easy to offer. I lived in Australia for a while, DSL was expensive and restricted: now I live in London UK, DSL is relatively affordable, but speeds are not great (e.g. max 2mbps).
However, it's nice for us techies to talk about high speeds, but for the "web browsing masses", these speeds are reasonably acceptable for surfing, downloading and streaming. The other "mass market" for high bandwidth are online gam
BB competing w/ Dial-up? (Score:2)
As long as broadband is a higher valued service, the price will reflect that. If an emerging technology becomes a disruptive technology, then the price wil go down.
Besides, broadband is a big fat cash cow giving lots of milk to fund the expanding infrastructure needs for the providers. It's also lining their pockets a bit. I doubt the price will go down but I do think it might get jacked up if nobody's watching. Utility companies love to pull that
don't forget about DSL (Score:2)
I'm thankful to say that DSL prices are starting to become competative. My first DSL line (McLeodUSA) is $140/mo for 768/768 with a few static IPs. Qwest has been offering DSL in this area for over a year, but offering lower speeds (256/512) for high
No meaningful competition (Score:2)
As more people sign on to high-speed access, how long will it be before we start seeing the cable companies (such as Comcast) start dropping their prices to levels which compete directly with dial-up?
You won't. Cable companies are legally mandated monopolies. They control the cable leading into your house. There is no meaningful competion for service and price as with the dialup providers. Prices are high. >$40 for basic cable TV, >$40 for IP. Until the monopoly is broken, as with the phone sys
Lower rates won't happen.. (Score:2, Interesting)
That was enough incentive for me to sign up. I have been on dialup since the early 90's, and I must say.. 21.95/month for Earthlink dialup, Vs. 3.5mb cable for $39.95/month? I mean, figure that one out. Who in their right mind would choose the dialup?
I love the fact that more people are getting broadband. That just sets the stag
That means filesharing is 42% up... (Score:3, Insightful)
What I am waiting for is when the RIAA finally starts to impact broadband profits. I think by then broadband will be several times more important than the whole music and film business. Some people might find themselves between a rock and a hard place...
Re:That means filesharing is 42% up... (Score:2)
Re:That means filesharing is 42% up... (Score:3, Insightful)
Video conferencing: This has been promised for so long it isn't funny, ubiquitous BB makes it possible
Video on Demand: Downloading fill length movies to watch as you please or watching them streamed real-time.
Advertising: adverts will take new forms and find new ways in to our homes via out Internet connections.
I think that the bandwidth used by any of these will dwarf the bandwidth used by pirates or file sharers.
DIalup is expensive because.... (Score:2, Interesting)
It's already competitive (Score:2)
I'm assuming you mean for the "casual user" who doesn't currently have a dedicated line. RSN, I think.
Prices aren't dropping (Score:3, Interesting)
- Networks expanding. Broadband means more bandwidth per customer. As more people use it, more websites get bulked up for broadband... more bandwidth used... more capacity needed.... then faster networks needed... websites bulk up more... cyclical
- Limited networks in competition. Most people don't have much broadband choice. Theres either cable (one provider), or DSL (if your lucky enough to live in DSL's short range).... soon power companies will join in, but the technology is still up in the air... and it's not cheap to implement, so I'd expect power companies in rural areas may jump in, but in areas where cable/dsl penetrated... doubt it. Most people have 1 broadband option. Lucky people have 2. Satellite is way to expensive for most people.
- It's a package deal. Cable networks sell packages. That's how they operate. Not ala Cart. They like to do services as well. That's why you have basic cable, premimum cable, sports packages, digital cable, HD TV packages, broadband packages etc. That's the business plan.
Compete with Dialup? (Score:3, Informative)
Comment removed (Score:3, Informative)
Re:In Europe... (Score:2, Informative)
Re:In Europe... (Score:2)