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by saas_co_de
3084 days ago
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Yes, wholesale broadband rates are dirt cheap and falling like a rock forever because of improvements in technology. What you pay for for broadband in the home is:
1) last mile connection (expensive to install)
2) bribes (sorry, "franchise fees")
3) advertising to maintain the illusion of competition
4) customer support to help you deal with your anger and cancel/activate you when you switch between various shitty providers to maintain the illusion of competition |
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1) It creates a huge barrier to entry because new ISPs have a hard time getting any name recognition.
2) Newpapers, radio stations, and television stations probably wouldn't want to say anything bad about telephone or cable providers. Imagine the phone call an NBC TV station would get if it attacked Comcast. That advertising is a good chunk of money.
3) Advertising is rolled into the PUC-approved "cost of doing business" and the cable or telephone companies get to add their profits on top of that.