Industry analyst Dave Burstein argues that rates are actually going up, due in large part to the unwillingness of cable companies to lower prices. DSL operators then realize that they aren’t in a price war, and subsequently raise their own prices. He cites the examples of both AT&T and Verizon, and says that AT&T’s basic DSL rate now starts at $39.95 unless you’re a new subscriber.
This is interesting, because broadband has been around for quite a while in the US and Canada, yet the prices have not really gone down. Back in 1999 I had a DSL connection for $43 a month Canadian, and the prices are still essentially the same today. It makes me cringe to know over in Japan you can get a 100Mbit connection for only $35/month.