Higher prices for customers when there is no competitionCompetition between rival services might be bad for a business, but it usually ends up being good for the consumer. In the case of Google Fiber expanding, competition between Google and other ISPs tend to result in lower prices between rival gigabit services. AT&T, for example, has had to offer its own gigabit service at a matching price in areas that Google Fiber has entered. But when there is no competition, things change. So while AT&T’s gigabit service is now available in Cupertino, it comes with a starting price of $110 a month according to the company's press release.
For $110 a month, Cupertino residents will have access to AT&T’s U-Verse service that provides internet speeds of up to 1Gbps. For residents who want 1Gbps speed and TV service together, the price starts at $150 per month. The company also offers download speeds of up to 300Mbps at $8 a month for those still wishing for faster internet speeds at a lower price. Finally, AT&T is offering the full package which includes up to 1Gbps internet speed, TV, and unlimited U-verse Voice with a starting price of $150 that comes with a two year price guarantee.
While it is great that those living in Cupertino, California now have access to a gigabit broadband network, it is a shame that they are paying $40 more than residents who live in areas that offer Google Fiber. For up to 1Gbps, Google Fiber charges $70 a month, a price that AT&T matches when both companies are competing in the same area. Hopefully, we will start to see more competition when it comes to gigabit networks.
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