Coaxing Us Into Higher Prices

Google Fiber can’t come soon enough. From Quartz:

All of which helps explain why the price of cable TV is holding steady in the US, while internet bills rise. Take a look at Time Warner Cable, the nation’s second-largest cable company (behind Comcast, which is attempting to acquire it). For its residential customers, the average monthly cost of TV service is $76.08, just a dollar more than it was two years ago. But internet service prices are up 21% over the same period, to an average of $47.30 a month.

The rising price of internet service could have something to do with more customers eschewing cable TV service in favor of internet-only/streaming (thus, justifying a jump to a more expensive, higher-bandwidth tier). But my own experience demonstrates the cable companies aren’t too motivated to extended the attractive promotional pricing they offer for the first year of service. And with the FCC recently voting to change the definition of broadband, it’s going to be an interesting couple of years on the broadband front.