By Jennifer Ng
Having a fast internet service is what everyone always wants but finding the best deal for it is always a struggle. Japan’s J:Com is offering 160 mbps, which makes it essentially the fastest consumer broadband in the world, and only had to invest $20 per home to upgrade its network to get that speed. The modem needed for that speed costs about $60, which is double for the current generation. This suggests to major cable systems in the United States that they can have their broadband service increase in speed by 5 to 10 times. They may not need to charge significantly more than they do now and will still be able to make as much money. What’s better is that the cable industry in the United States uses the same technology as J:Com so many homes in America can experience the same high speed as those in Japan do. So the problem lies in that major cable companies are charging almost double what J:Com does to offer them not even half of the speed J:Com offers. The reasoning behind this is that there is no competition for broadband services. Cable executives fear that by offering faster broadband, the prices will gradually drop for consumers.
Sources:
http://bits.blogs.nytimes.com/2009/04/03/the-cost-to-offer-the-worlds-fastest-broadband-20-per-home/?scp=9&sq=consumer%20finance&st=cse
http://www.dailytech.com/JCom+160+Mbps+Internet+Service+Upgrades+Cost+Company+Just+20+per+Household/article14767.htm
http://www.multichannel.com/article/191112-Cable_Show_2009_Japan_s_J_Com_Racks_Up_DOCSIS_3_0_Subs.php
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