Comments on: Bells slash prices to lure broadband customers

Verizon's newly priced $14.95 service is aimed at mainstream, price-sensitive dial-up Internet customers.

[4nchip]

Broadband for the masses!

Way to go, Verizon! Its about time the cable companies were
challenged. Broadband is a real necessity these days and should
be an affordable service. Broadband at dial-up prices is an
indication that progress is moving again. Now, if we could get
the price of driving down to the price of flying, that would be a
real step forward.

[4nchip]

Broadband for the masses!

Way to go, Verizon! Its about time the cable companies were
challenged. Broadband is a real necessity these days and should
be an affordable service. Broadband at dial-up prices is an
indication that progress is moving again. Now, if we could get
the price of driving down to the price of flying, that would be a
real step forward.

[aabcdefghij987654321]

Chintsy service

While the lower price point is good, it's simply proof that they're giving the shaft to their previous customers who're paying more for slightly faster service. The hardware for the lower speed service and the higher speed service is the same, they're just throttling back the speeds to keep the higher paying customers paying the higher prices.

A truly competitive move would've been to offer the higher speed at the lower price point including a drop in price for the existing customers. In an age of continually rising prices a vendor dropping prices could buy a lot of customer loyalty and save a bundle on advertising since happy customers would spread the word. But this is the phone company we're talking about here and they've done nothing but raise their prices for years.

[Jimmu411]

Just like with cell phones

The strategy is to get customers, not to keep customers. They count on customers being too lazy to change to a better deal.

I don't think you understand

They are only able to offer these deals to new customers BECAUSE of the existing customers accounts. If they had to give everyone the same price drop, they wouldn't be able to afford doing so to begin with. You most likely got a better deal than their previous customers when you first signed on, why are others not entitled to the same?

Also, things (nearly) always get cheaper as time passes. Do you expect the auto dealer you purchased your car from last year to give you the price difference between what you paid and what a buyer can now buy that same model for?

[aabcdefghij987654321]

Chintsy service

While the lower price point is good, it's simply proof that they're giving the shaft to their previous customers who're paying more for slightly faster service. The hardware for the lower speed service and the higher speed service is the same, they're just throttling back the speeds to keep the higher paying customers paying the higher prices.

A truly competitive move would've been to offer the higher speed at the lower price point including a drop in price for the existing customers. In an age of continually rising prices a vendor dropping prices could buy a lot of customer loyalty and save a bundle on advertising since happy customers would spread the word. But this is the phone company we're talking about here and they've done nothing but raise their prices for years.

[Jimmu411]

Just like with cell phones

The strategy is to get customers, not to keep customers. They count on customers being too lazy to change to a better deal.

I don't think you understand

They are only able to offer these deals to new customers BECAUSE of the existing customers accounts. If they had to give everyone the same price drop, they wouldn't be able to afford doing so to begin with. You most likely got a better deal than their previous customers when you first signed on, why are others not entitled to the same?

Also, things (nearly) always get cheaper as time passes. Do you expect the auto dealer you purchased your car from last year to give you the price difference between what you paid and what a buyer can now buy that same model for?