Quote:
Originally Posted by retiredguy123
To me, advertising any service with a guaranteed "price for life" is not a good sales pitch. I expect to get a good competitive service with a good competitive price with the understanding that any price or service is likely to change over time. It is not realistic to expect the same service with the same price to be delivered forever. That is just not the way things work.
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When it comes to keeping prices stable, which is one of the major complaints customers have, there is a significant difference between a fiber company that only delivers internet and the cable company that delivers internet, TV and phone service. The cable company is burdened by content fees which is a variable cost they pay to content providers to re-sell their content. Typically a cable company will have a contract with ESPN for example to pay "X" amount per subscriber for the length of the contract. When that contract is completed, ESPN, in this case the content provider, can and usually changes the price for their content for the next contract period. Usually its more expensive for whatever reasons. The cable company then has no choice but to past this increase on to their subscribers. This is the main reason why no matter how good or how large a cable company is, their cost of doing business always increases. On the other hand, a pure data company such as Quantum does not provide content so they don't have this ever increasing cost to manage. Their cost for doing business is running their data centers, servers, outside fiber plant and manitenance. There are some costs to connect to the internet but these are usually fixed. This is why a fiber internet company like Quantum or Centric here in our area can confidently make statements that they will keep costs low and fairly constant for as long as they provide that service.
Hope this helps.