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Wednesday, August 24, 2011

The Daily Stat: Unlike Computer Prices, Broadband Prices Hardly Fall

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AUGUST 24, 2011
Unlike Computer Prices, Broadband Prices Hardly Fall
While prices of computers and other types of electronics typically fall by double digits each year, the quality-adjusted price of broadband declines only slightly, according to Shane Greenstein and Ryan McDevitt of the Kellogg School at Northwestern University. Prices charged by U.S. cable and DSL companies rose a bit or stayed flat from 2004 through 2009, but increases in data speed led to quality-adjusted broadband price declines of about 2% per year, the researchers say.
Source: Evidence of a Modest Price Decline in US Broadband Services
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