A Tale of Two Homes in Spectrum Territory: What Competition Does to Pricing
Competition is a wonderful thing. A case in point is the enormous difference Charter Spectrum charges new customers in areas where competition exists, and where it does not. Stop the Cap! compared promotional new customer offers in the metro Rochester (NY) market where Spectrum faces token competition from Frontier’s slow speed DSL service. Then we checked pricing in neighborhoods where a fiber to the home overbuilder called Greenlight also offers service. Spectrum does not even bother offering new customers its entry-level 200 Mbps plan in areas where it has significant fiber competition. For $20 less per month, you get double that speed. Gigabit service is $20 less in competitive areas, too. Spectrum charges a hefty $199.99 compulsory installation fee for gigabit service in non-competitive neighborhoods. Where fiber competition exists, sometimes just a street away, that installation fee plummets to just $49.99.
A Tale of Two Homes in Spectrum Territory: What Competition Does to Pricing Charter charges more money for slower Internet on streets with no competition (ars technica)