>This is all well and good, but they keep increasing the price, and refuse to offer lower-tier service. I probably wouldn't want 12Mbps anymore, but 20 or 25 would suffice. I wish I could pay a fraction of what I'm paying for 75Mbps and get a lower tier of service. It should suffice that x% of customers are offered "broadband" for a reasonable price, even if some choose a lower speed.
The problem is that most of the costs of providing broadband are fixed costs. To run a coaxial cable from their headend to your house, and to provide employees and crews to repair it and install it all costs the same whether you buy 10 megabits or 2 gigabits
The variable costs--things like backbone bandwidth, paying for transit, doing node splits, etc are a smaller part of the overall cost than you might expect
This lower end of the market, though, is being taken up by Fixed Wireless (T-Mobile and Verizon primarily) for example you can get Verizon home wireless internet for as low as $25. My mom has it, and it's decent 50 megabit service for a low price
The problem is that most of the costs of providing broadband are fixed costs. To run a coaxial cable from their headend to your house, and to provide employees and crews to repair it and install it all costs the same whether you buy 10 megabits or 2 gigabits
The variable costs--things like backbone bandwidth, paying for transit, doing node splits, etc are a smaller part of the overall cost than you might expect
This lower end of the market, though, is being taken up by Fixed Wireless (T-Mobile and Verizon primarily) for example you can get Verizon home wireless internet for as low as $25. My mom has it, and it's decent 50 megabit service for a low price