It’s no surprise that cable companies charge lower prices for broadband when they face competition from fiber-to-the-home services. But an article yesterday by Stop the Cap provides a good example of how dramatically promotional prices for Charter’s Spectrum Internet service can vary from one street to the next.
In this example, Charter charges $20 more per month for slower speeds on the street where it faces no serious competition. When customers in two areas purchase the same speeds, the customer on the street without competition could have to pay $40 more per month and would have their promotional rates expire after only one year instead of two.
Stop the Cap said it examined promotional offers to new customers in the metro Rochester, New York, market, “where Spectrum faces token competition from Frontier’s slow speed DSL service” and more robust competition in limited areas from Greenlight Networks’ fiber service. Greenlight fiber is available in 23 percent of Rochester, while Charter cable is available to homes throughout the city, according to BroadbandNow. Greenlight prices start at $50 per month for 500Mbps.