Cox is apparently ignoring the recent Pew Internet research results which suggested that broadband pricing is still too high. According to BroadbandReports.com, Cox is raising their broadband pricing for many of their broadband tiers in several markets. Apparently, their “economy” tier will rise to $19.95 from $16.95 and their “value” tier to $29.95 from $26.95. Their “preferred” and “premiere” tiers are also rising to $44.95 and $59.95 respectively. These identified prices include bundle discounts for taking video. The Pew Research Center recently released their 2008 Home Broadband Adoption Study, in which one of the finding suggested that high prices for broadband is impeding higher broadband penetration rates for the U.S. The Pew results indicate growth in broadband penetration is relatively flat and “35% of dial-up users say that the price of broadband service would have to fall,” in order for them to give up dial up for broadband.
Of course that’s one opinion in the broadband pricing debate. Broadband carriers tend to have a different perspective, especially as the appetite for bandwidth continues to climb. Satisfying that growing subscriber appetite, while also holding the line on price is a challenge, they say. If the trend continues where broadband consumption continues to grow at a rapid pace, and there’s no indication it won’t, broadband carriers will continue to explore raising prices. Maybe even at the expense of slowing penetration growth. How are you coping with finding the right balance between price and penetration?
