Californians Paying $1B More Due to Lack of Gigabit Broadband Competition: CPUC
The cost of gigabit broadband service is anywhere from $15 to $40 a month more expensive when there's only a single gigabit provider, according to a study last week by the California Public Utilities Commission's Public Advocates Office. The study looked at the prices of stand-alone residential internet access charged by California’s four largest fixed providers in San Mateo, Oakland, Los Angeles and San Diego. The benchmark price for competitive broadband service in those markets averages about $51 a month, it said. When comparing locations with limited competition to those with overlapping gigabit networks, "Californians could save more than $1 billion annually if competitive pricing prevailed statewide."
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CPUC said prices are driven largely by the presence of overlapping gigabit-capable networks. Competition among providers offering comparable gigabit service "produces the strongest downward pressure on prices for higher-speed tiers," while providers offering only sub-gigabit service "do not consistently constrain pricing of a monopoly gigabit provider."