this post was submitted on 20 Aug 2023
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The ISP have probably made careful calculations of how much they can increase the price before people start looking for alternative ISPs. So if we could collectively lower our thresholds to look for alternatives, we could probably achieve lower prices.
Here's what happens. Say you have three businesses providing roughly the same service in your area. They know you are going with one of them.
If they compete too much on price is a race to the bottom. There's a point at which one or more companies are losing money to compete. The ones with deeper pockets starve everyone else out then start raising prices.
Now, let's assume these three are the ones that made it.
They are not allowed to collude on price. That's illegal, they would be acting like a monopoly. Can't have that so they passed a law.
What's allowed? Publishing your pricing online. What's crazy is the other companies can see this so it's kind of light all three can still meet and compare pricing.
Because of this, you'll be paying about the same no matter where you go. You might be able to find a reseller that provides the connection but no real service. That's fine, but most people aren't using that.
You might find services bundled with other services like a mobile phone plan, tv packages, etc. That's even worse since they call use "price confusion" to make it look like price diversity but no one is letting anyone else eat their lunch.
All of this should be yelling at you full volume that this business is a de facto monopoly so therefore should be regulated heavily or run as a government utility.
The absolute failure to enforce antitrust laws is possibly the single biggest contributor to all problems in the western world right now.
That only works in a competitive market. A lot of places, even in the developed world, have just a single provider in some of the areas people live in outside of major cities. And even in major cities thereβs often not enough competition to find reasonably cheap internet, all the prices are within stone throw of each other. Essential utilities being privatized is a scam, especially when infra is funded by the public dollar.
I've noticed this starting to break, i.e. more actually starting to compete with each other and enter each other's "turf". Part of that I think is municipal fiber.
And different towns can be charged wildly different amounts for the same service