Friday, March 12, 2010

Tough competition lies ahead for the broadband companies

A major price war is ready to be sparked off in UK in the realm of broadband packages and services. In fact, this is going to be more of a monopolistic competition war where one major industry player will dictate the prices to the other , not necessary marginal, players. Well let me be explicit.

The initial package prices British Telecom, BT has set for its high speed optic fibre broadband services, Infinity, are very very low. For a monthly charge of only 25 pounds a month, one gets free connection for BT infinity which gives the consumers a broadband speed up to 40 MBPS alongwith a download speed of 10mbps, unlimited Wi Fi access, a digital storage of 5GB and advanced security features. The duration of the package is 18 months and seriously, the consumers couldn’t have asked for more. It is as economical and as blissful it could get.

For other broadband service providers in the country, this could mean that they have to find innovative technology solutions in order to provider the consumers the prices as competitive as that of BT’s Infinity otherwise they will have a tough time selling their products and services in the market.

Many analysts and industry experts are surprised as to why BT has kept the prices so low when the trend is that at the launch of an innovative technology solution, the prices are kept on the higher side so as to get maximum revenue in the early days, before the rivals get the necessary technology to provide the same services.

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