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I live out of town in southern Thailand, I have 500/500mbps internet that I pay 600THB/month for (around $17USD). Using the same equipment, same fibre and more

by jpgvm 3y ago

I live out of town in southern Thailand, I have 500/500mbps internet that I pay 600THB/month for (around $17USD). Using the same equipment, same fibre and more expensive transit than a US ISP would pay (which could easily do entirely settlement free peering with every network that matters). Moreover I paid nothing for the install despite them needing to bring fibre down my alley off the main road. US ISPs are just price gouging. The fat salaries and bonuses their executives have received over the last 2 decades and the dividends they pay their shareholders all support this conclusion. There is intense competition here between a few major players all with their own networks. i.e real market forces that keep prices down, products continually improving and customer satisfaction high. The idea that there are "service areas" with only a single provider should tell you everything you need about collusion to maintain regional monopolies.

deleted 3y ago
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missedthecue 3y ago
US telecoms certainly use sketchy tactics to push price increases on their monthly billed customers over time, but it's hard to say they are price gouging. Most are publicly traded and their operating and net margins can be found with a quick Google search. Spectrum for instance sits at 9.24% net margins currently. Wipe that out completely and your bill doesn't get much cheaper.
- jpgvm 3y ago
  The Thai telcos are publicly traded also. I took a look at AIS (probably the biggest here) and despite much lower prices their books are in a much better shape. Namely Profit Margin 15.81% and Operating Margin (ttm) 23.38%, they have proportionally less debt on their books and their business just looks a lot leaner and more efficient so despite charging ~1/10th what US ISPs do they have a better return on invested capital. So maybe US ISPs are just very poorly run businesses.

by jpgvm 3y ago

deleted 3y ago

[deleted]

missedthecue 3y ago

US telecoms certainly use sketchy tactics to push price increases on their monthly billed customers over time, but it's hard to say they are price gouging. Most are publicly traded and their operating and net margins can be found with a quick Google search. Spectrum for instance sits at 9.24% net margins currently. Wipe that out completely and your bill doesn't get much cheaper.

jpgvm 3y ago
The Thai telcos are publicly traded also. I took a look at AIS (probably the biggest here) and despite much lower prices their books are in a much better shape. Namely Profit Margin 15.81% and Operating Margin (ttm) 23.38%, they have proportionally less debt on their books and their business just looks a lot leaner and more efficient so despite charging ~1/10th what US ISPs do they have a better return on invested capital. So maybe US ISPs are just very poorly run businesses.