Re:Colorado Town Offers 1 Gbps for $60 After Years of Battli...
by logfromblammo on Wednesday September 18, 2019 @11:04AM
(#21006144)
Not if they also fix the bandwidth allowance. Over time, I would expect the cost of provisioning a 1 Gbps link to drop faster than that $50 loses purchasing power.
Your $50/mo for 1 Gbps can therefore remain stable, and the ISP might someday offer 10 Gbps for $70/mo as an upgrade offer. Clearly, by those prices, as long as the per-customer costs are less than $47.78, that $50 more than covers the cost of the 1 Gbps bandwidth. Everyone who doesn't upgrade ends up subsidizing further build-out.
Your $50/mo for 1 Gbps can therefore remain stable, and the ISP might someday offer 10 Gbps for $70/mo as an upgrade offer. Clearly, by those prices, as long as the per-customer costs are less than $47.78, that $50 more than covers the cost of the 1 Gbps bandwidth. Everyone who doesn't upgrade ends up subsidizing further build-out.