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Dilbert Explains Telco, Cableco Pricing Strategy
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Monticello Fiber Price War Offers Key Lessons for Broadband Competition
Monticello Minnesota may be located 40 miles outside Minneapolis, but it is the center of the planet when it comes to FTTH competition.
Wilson's Greenlight Keeps Time Warner Prices Low in Community
Catharine Rice gave a terrific presentation detailing the ways Time Warner has responded to the municipally-owned Greenlight fiber-to-the-home network: raising the rates on everyone around them and cutting great deals to Wilson residents.
Competition Does Not Always Keep Prices Low
We are seeing increasing evidence that competition alone is not sufficient to keep prices low. Though some communities (Monticello, MN; Powell, WY) have seen major prices drops as a result of competition from a publicly owned network, other communities have seen only price freezes or more modest increases when compared to non-competitive areas.
TDS Ups Ante in Monticello with Predatory Pricing
Monticello Minnesota, the small community located 40 miles northwest of the Twin Cities, recently returned to the news when its telephone incumbent, TDS, began offering a fast 50/20 Mbps residential broadband connection for $50/month.
Lafayette and Incumbent Responses to New Networks
For another real-world example of how companies respond to public entry into the telecom market (as opposed to theoretical arguments about crowding out investment), let's look back down to Lafayette and how cable incumbent Cox responded:
“Cox froze the cable rates in Lafayette, and they didn’