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Firms Rushing To Offer High-Speed Internet Service.(A)
Byline: PETE BARLAS
Companies are finally using the words "cheap" and "broadband" in the same sentence.
More and more firms are scrambling to sell high-speed Internet access, known as broadband, at cut-rate prices.
Some are selling slower versions of the service at reduced rates. Others are cutting prices for a limited time to hook new customers. That should spur demand, analysts say, since most consumers aren't willing to pay the typical monthly rate of $40 to $50 for broadband.
"Cutting the price from $45 to $30 would double the amount of people willing to pay for the service," said Bruce Leichtman, president of the Leichtman Research Group, which tracks the market.
Broadband service is 25 times faster than basic dial-up service, which sells for about $20 a month. Broadband is mostly delivered through cable modems and digital subscriber lines, or DSL. Subscriber numbers are growing fast, but haven't taken off as quickly as forecast.
By the end of September, there were 15.6 million broadband subscribers, 25% of total Internet users. That compares with 9.5 million at the same time a year ago, according to Leichtman Research.
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