Verizon DSL Pricing

I'm not sure there's a good reason for Verizon to charge month-to-month payers the same amount for a 768Kbps connection as a 3Mbps connection.


Perhaps most of the monthly fee is accrued to overhead and fixed costs of the pipe, while the marginal cost of additional bandwidth really is zero! But why charge half for a small bandwidth one-year committment, and not charge less for the same max usage to a month-to-month user? Does Verizon need the lower-bandwidth one-year contracts to keep their tubes filled? Are the costs of dealing with month-to-month customers that much higher than one-year contactors?


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This page contains a single entry by Kevin published on August 31, 2006 10:17 AM.

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