IP Democracy: Bandwidth Getting Cheaper on a Per Mbps Basis

Courtesy of Om, LightReading’s Phil Harvey has this cool piece showing how the price of his high-speed service from Charter has fallen 80% in three years. Harvey presents a fascinating table that underscores a key point about high-speed Internet access: consumers are willing to pay more on an absolute basis each month for broadband service if speeds keep going up.

Harvey shows how the price per megabit has dropped from $41.94 in September 2003 to $6.04 in September 2006, an effective price cut of 80%. The cause of the price “cut:” Charter has upped the download speed of Harvey’s service from 1.5 Mbps to 10 Mbps.

Posted by Cynthia Brumfield on September 24, 2006 11:27 AM to IP Democracy