Sunk costs support sinking gigabit prices
broadband, chattanooga, community networks, ftth, public policy, utopia
Nowhere to go but up.
Fiber-to-the-home system operators are falling in behind Google’s idea that market share counts more than marginal revenue gains (or cost controls). Both Chattanooga’s municipal FTTH network and the Utopia system serving several Utah communities are following Google’s lead in Kansas City and Provo, and offering residential gigabit service for monthly fees in the $65 to $70 range.
At $350 per month, Chattanooga was attracting only a few dozen gigabit-level subscribers. At $70 per month, it should shortly have tens of thousands.… More