Value in networks
Reading more telecommunications scholarship today, I'm struck by how analog the discussion is. Broadband networks are analogized to department stores, bridges used by railroads, road systems — it's as if interactivity never happened, and we're all just part of a global production chain. We consume, they provide, the only question is who gets to charge for what. Whoof.
Well, so if broadband access is a department store (sure, I'll play on your field) is it all Macy's?
Effectively, yes. We have very few choices here in the U.S.
According to the FCC's July report [pdf]: about half of us have two choices of broadband provider (DSL and cable); a third only have one choice; and about 13% have no broadband service from either DSL or cable. Satellite, wireless, and the much-hoped-for BPL (broadband over power line) make up about .5% of residential broadband access.
Verizon is confident enough about the situation for its subscribers that it wrote to me (and millions of other people) saying it intended to charge a new fee. I wrote back saying “inappropriate and unlawful” but they weren't taking messages.
Starting August 26, 2006, Verizon Online will begin charging a Supplier Surcharge for all new DSL customers, existing customers with a DSL monthly or bundle package, and existing DSL annual plan customers at the time their current annual plan expires. This surcharge is not a government imposed fee or a tax; however, it is intended to help offset costs we incur from our network supplier in providing Verizon Online DSL service. The Supplier Surcharge will initially be set at $1.20 a month for Verizon Online DSL customers with service up to 768Kbps and $2.70 per month for customers with DSL service at higher speeds.
I don't think we've got a very competitive marketplace if this company can impose another fee on a commodity service. Prices should be going down, not up.
In the Netherlands they're paying 7 euros for 30Mbps symmetrical service.
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What, in your opinion, the reason for lack of competition in USA?
Is the low price in Europe a result of competition or subsidy?