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Centurylink is offering gigabit for $65 flat (no taxes or fees) across its footprint, and 100Mbps for $55, 40Mbps for $45. At $70 a month Google was significant
by metildaa 8y ago
Centurylink is offering gigabit for $65 flat (no taxes or fees) across its footprint, and 100Mbps for $55, 40Mbps for $45. At $70 a month Google was significantly above the average price people paid for internet, but they were offering a premium product (gigabit). Had they offered slower, more affordable tiers to residences that didn't initially jump, they likely could have broken even.
The problem with overbuilding is uptake rates, its not good to only capture 28% of the market or similar, you really need 40+% to break even. The City of Tacoma ran into this with their cable network, and so has Google. Webpass is Google's fix for that, only targetting larger buildings where a 10% uptake rate gets them in the green.
- criddell 8y ago> only targetting larger buildings where a 10% uptake rate gets them in the green That's not really an acceptable way to operate what is essentially a public utility at this point. We clearly need better regulation of these companies.
- owenmarshall 8y ago> Centurylink is offering gigabit for $65 flat (no taxes or fees) across its footprint Oh word! They are in Louisville? Where do I sign up? Hint: "average prices" for high speed internet mean very little in the USA as those prices vary wildly. I pay $30 less for 300Mbps service than a remote coworker does for 75Mbps - from the same company.
- metildaa 8y agoCenturylink isn't in Louisville, was just trying to highlight how Google Fiber has encouraged average speed per dollar spent to rise, and how other large providers are getting financially solvent wen running fiber. Most of Centurylink's territory has only halfhearted competition from the local cable company (Comcast, Charter, Wave), and they just recently lost a lawsuit where the state AGs from Oregon, Washington, Minnesota and a few other states ganged up and prosecuted them for hidden fees and malicious billing practices, thus why they are on the straight and narrow now, with the price you see being exactly what you will pay.