<html>
  <head>

    <meta http-equiv="content-type" content="text/html; charset=utf-8">
  </head>
  <body bgcolor="#FFFFFF" text="#000000">
    <br>
    <div class="moz-forward-container"><br>
      <br>
      -------- Forwarded Message --------
      <table class="moz-email-headers-table" border="0" cellpadding="0"
        cellspacing="0">
        <tbody>
          <tr>
            <th align="RIGHT" nowrap="nowrap" valign="BASELINE">Subject:
            </th>
            <td>Here's What Happens When Internet Providers Have Zero
              Competition</td>
          </tr>
          <tr>
            <th align="RIGHT" nowrap="nowrap" valign="BASELINE">Date: </th>
            <td>Wed, 1 Apr 2015 10:46:24 -0700</td>
          </tr>
          <tr>
            <th align="RIGHT" nowrap="nowrap" valign="BASELINE">From: </th>
            <td>Eric Thompson <a class="moz-txt-link-rfc2396E" href="mailto:elt@pacbell.net"><elt@pacbell.net></a></td>
          </tr>
          <tr>
            <th align="RIGHT" nowrap="nowrap" valign="BASELINE">To: </th>
            <td>Eric Thompson <a class="moz-txt-link-rfc2396E" href="mailto:ericthom@mac.com"><ericthom@mac.com></a></td>
          </tr>
        </tbody>
      </table>
      <br>
      <br>
      <meta http-equiv="content-type" content="text/html; charset=utf-8">
      <div><span></span></div>
      <div>
        <meta http-equiv="content-type" content="text/html;
          charset=utf-8">
        <div><base
href="http://www.huffingtonpost.com/2015/03/31/internet-providers-competition_n_6980292.html?ncid=txtlnkusaolp00000592">
          <style id="article-content">
        @media print {
            .original-url {
                display: none;
            }
        }

        h1.title {
            font: -apple-system-headline;
            font-weight: normal;
            text-align: start;
            -webkit-hyphens: manual;
        }

        blockquote {
            color: rgba(0, 0, 0, 0.5);
            margin-left: 20px;
            margin-right: 20px;
        }

        blockquote > *:first-child:before {
            -webkit-margin-start: -6px;
            content: open-quote;
        }

        blockquote > *:last-child:after {
            content: close-quote;
        }

        /* FIXME: We should be able to remove this when WebKit's link color matches UIKit's (<rdar://problem/13650224>). */
        .page a {
            color: rgb(20, 111, 223);
        }

        #article .large-element {
            max-width: 100%;
            height: auto;
        }

        .page {
            font: -apple-system-body;
            text-align: start;
        }

        #article .leading-image, #article figure, #article .auxiliary {
            font: -apple-system-short-subheadline;
        }

        h1 {
            font: -apple-system-subheadline;
        }

        h2 {
            font: -apple-system-footnote;
        }

        h3 {
            font: -apple-system-caption1;
        }

        h4, h5, h6 {
            font: -apple-system-caption2;
        }

        h1, h2, h3, h4, h5, h6 {
            font-weight: bold;
        }

        hr {
            background: rgba(0, 0, 0, 0.2);
            height: 1px;
            border: 0;
        }
    </style>
          <link rel="stylesheet" type="text/css"
            href="safari-resource:/WBSReaderSharedStyleSheet.css"
            id="article-content-shared">
          <title>Here's What Happens When Internet Providers Have Zero
            Competition</title>
          <div class="original-url">FYI Eric T. <br>
            <a moz-do-not-send="true"
href="http://www.huffingtonpost.com/2015/03/31/internet-providers-competition_n_6980292.html?ncid=txtlnkusaolp00000592">http://www.huffingtonpost.com/2015/03/31/internet-providers-competition_n_6980292.html?ncid=txtlnkusaolp00000592</a><br>
            <br>
          </div>
          <div id="article">
            <!-- This node will contain a number of 'page' class divs. -->
            <div class="page" style="font-size: 20px; line-height:
              30px;">
              <h1 class="title">Here's What Happens When Internet
                Providers Have Zero Competition</h1>
              <!-- Entry Text -->
              <p>It’s basic economics: Competition drives down prices.</p>
              <p>So it’s no surprise that <a moz-do-not-send="true"
href="http://arstechnica.com/business/2015/03/atts-newest-fiber-customers-to-pay-40-more-than-google-fiber-users/"
                  target="_hplink">AT&T is charging way more for its
                  highest-speed Internet service</a> in Cupertino,
                California, where it’s the only provider of superfast
                gigabit speeds, than in cities where it has a
                competitor.</p>
              <p>AT&T’s pricing power in the small and expensive
                enclave of Silicon Valley illustrates the state of
                broadband in the U.S. Because of the huge infrastructure
                costs of deploying a network, there is very little
                competition -- nearly 75 percent of households in the
                U.S. <a moz-do-not-send="true"
                  href="https://apps.fcc.gov/edocs_public/attachmatch/DOC-329161A1.pdf"
                  target="_hplink">have one or no options for broadband
                  Internet</a>, according to the FCC. And as speeds go
                up, competition goes down. </p>
              <p>AT&T’s GigaPower Internet service, which <a
                  moz-do-not-send="true"
href="http://about.att.com/story/uverse_with_gigapower_launches_in_cupertino.html"
                  target="_hplink">launched in Cupertino on Monday</a>,
                will cost consumers $110 per month if they want the top
                speed of up to 1,000 megabits (one gigabit) per second
                for downloads. That’s $40 more per month than AT&T
                charges in other cities where it offers the service,
                like Austin and Kansas City, <a moz-do-not-send="true"
href="http://arstechnica.com/business/2015/03/atts-newest-fiber-customers-to-pay-40-more-than-google-fiber-users/"
                  target="_hplink">Ars Technica’s Jon Brodkin reports</a>.</p>
              <p>The difference is that in Austin and Kansas City, <a
                  moz-do-not-send="true"
href="http://www.wsj.com/articles/google-pressures-at-ts-broadband-prices-1427760612"
                  target="_hplink">AT&T competes with Google Fiber</a>,
                the search giant’s own superfast Internet network. In
                those places, both Google Fiber and AT&T offer
                gigabit service starting at $70 per month.</p>
              <p><em>AT&T GigaPower Pricing In Austin, Texas:</em> <br>
                <img moz-do-not-send="true" alt="att austin"
                  src="http://i.huffpost.com/gen/2786738/thumbs/o-ATT-AUSTIN-570.jpg?6"></p>
              <p><em>And in Cupertino, California:</em><br>
                <img moz-do-not-send="true" alt="att cupertino"
                  src="http://i.huffpost.com/gen/2786740/thumbs/o-ATT-CUPERTINO-570.jpg?3"></p>
              <p>AT&T's <a moz-do-not-send="true"
                  href="http://www.att.com/esupport/article.jsp?sid=KB421828&cv=812"
                  target="_hplink">price is contingent upon giving the
                  company access</a> to your browsing information and
                what you search for online, so AT&T can better
                target ads to you -- you have to pay more if you opt
                out.</p>
              <p>The company declined to comment about the price
                discrepancies in its GigaPower service. In a statement,
                it said, “We’re excited to offer the fastest high-speed
                Internet in Cupertino at a price that is competitive for
                the market.”</p>
              <p>Competition appears to have prompted AT&T to cut
                prices before. Earlier this month, it dropped the price
                of its GigaPower service in Raleigh and Durham, North
                Carolina, <a moz-do-not-send="true"
href="http://www.dslreports.com/shownews/Thanks-Google-Fiber-ATT-Drops-Gigapower-Prices-in-Raleigh-133040"
                  target="_hplink">after Google said it was planning to
                  launch its network there</a>. </p>
              <p>Cupertino, which is home to Apple, is <a
                  moz-do-not-send="true"
href="http://www.businessinsider.com/most-expensive-zip-codes-in-silicon-valley-2015-1?utm_content=buffer31f4b&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer"
                  target="_hplink">among the most expensive places to
                  live in the U.S.</a>, so AT&T can get away with
                charging people a premium for the service. </p>
              <p>"We'd love to see other companies come in and offer
                competitive speeds to what AT&T now offers," said
                Rick Kitson, a spokesperson for city of Cupertino.
                "Everyone needs the speed and the access that's now
                certainly possible but still isn't universally
                available."</p>
              <center>
                <p><img moz-do-not-send="true" alt="broadband"
                    src="http://i.huffpost.com/gen/2787006/thumbs/o-BROADBAND-570.jpg?6"><br>
                  <em>This chart <a moz-do-not-send="true"
                      href="https://apps.fcc.gov/edocs_public/attachmatch/DOC-329161A1.pdf"
                      target="_hplink">from the FCC</a> shows how few
                    Internet options most people have.</em></p>
              </center>
              <p>Karl Bode, a technology writer and the editor of the
                industry site <a moz-do-not-send="true"
                  href="http://www.dslreports.com/" target="_hplink">DSLReports</a>,
                said that inexpensive access to broadband in the U.S. is
                a much bigger issue than the current deployment of
                gigabit networks, which he says is “overhyped.” After
                all, gigabit service is <a moz-do-not-send="true"
href="https://www.techdirt.com/blog/netneutrality/articles/20141217/10125929466/commerce-department-study-reveals-theres-almost-no-competition-if-you-want-real-broadband.shtml"
                  target="_hplink">only available to 3 percent of the
                  entire U.S. population</a>.</p>
              <p>“So while gigabit is great if you can get it, a far
                more important conversation to be having is in regards
                to price -- and how the general lack of competition in
                the majority of markets has people paying an arm and a
                leg not just for slow service, but some of the worst
                customer support in any industry,” Bode wrote in an
                email. “There's still a pretty notable digital divide
                and competitive shortfall, and deploying gigabit
                services to select portions of a small number of cities
                isn't doing much so far to seriously impact this.”</p>
            </div>
          </div>
        </div>
        <div><br>
          <br>
          <br>
        </div>
      </div>
      <br>
    </div>
    <br>
  </body>
</html>