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Why Your Phone, Cable & Internet Bills Cost So Much
Yahoo! Finance ^ | 9-24-12 | Stacy Curtin

Posted on 09/24/2012 10:19:28 AM PDT by RightCenter

The U.S. has fallen behind much of the Western world when it comes to phone, cable and Internet service. Americans actually pay much more for inferior service compared to their global counterparts. In his new book, The Fine Print: How Big Companies Use 'Plain English' to Rob You Blind, Pulitzer Prize-winning reporter David Cay Johnston highlights these astounding facts: Americans pay four times as much as the French for an Internet triple-play package—phone, cable TV and Internet—at an average of $160 per month versus $38 per month. The French get global free calling and worldwide live television. Their Internet is also 10 times faster at downloading information and 20 times faster uploading it. America has gone from #1 in Internet speed (when we invented it) to 29th in the world and falling. Bulgaria is among the countries with faster Internet service. Americans pay 38 times as much as the Japanese for Internet data.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Science; TV/Movies
KEYWORDS:
both big government and the monopolies are to blame. watch the video!
1 posted on 09/24/2012 10:19:33 AM PDT by RightCenter
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To: RightCenter
The big-government/big-corporate criminal monopoly at work to steal from you.
2 posted on 09/24/2012 10:26:39 AM PDT by E. Pluribus Unum (Government is the religion of the sociopath.)
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To: RightCenter

Another case of an industry that does not appreciate our relatively deregulated environment and tries to be too clever by half. Or more like six-ahd-a-half. To the point where highly regulated countries like France start to look good by comparison.

Eventually when people get fed up and elect Socialists these guys will have no one but themselves to blame.


3 posted on 09/24/2012 10:30:42 AM PDT by Buckeye McFrog
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To: RightCenter

www.speedtest.net

Check your speed and see where you stand against the world...


4 posted on 09/24/2012 10:31:53 AM PDT by NCDave (AKA, "That idiot over there")
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To: RightCenter

Might be an interesting study, but I believe from annecdotal evidence that more and more people are sloughing off television service in cost cutting measures. They can access their favorite shows through the internet. That has some real implications to mainstream media and where people get their news.


5 posted on 09/24/2012 10:32:17 AM PDT by marsh2
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To: RightCenter; E. Pluribus Unum

I suppose what both of you say is semi-correct.

I fall back on the ol’ “supply-and-demand” thing. If many people would suddenly halt their services then the prices would drop dramatically.


6 posted on 09/24/2012 10:34:13 AM PDT by spel_grammer_an_punct_polise (I wanna start a Seniors' Motor Scooter Gang. Wanna join?)
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To: RightCenter
It's a little more difficult to upgrade infrastructure when you are the size of America, not to mention liberal policies have hamstrung innovation and competition.
7 posted on 09/24/2012 10:34:22 AM PDT by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Buckeye McFrog

Eventually when people get fed up and elect Socialists these guys will have no one but themselves to blame.
///
but wouldn’t it be much better, if the Government controlled it all...
and costs would go down if everyone had to subscribe,
or pay a fee ?


8 posted on 09/24/2012 10:36:56 AM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
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To: Durus

It’s a little more difficult to upgrade infrastructure when you are the size of America, not to mention liberal policies have hamstrung innovation and competition.


As the article states, internet speeds are way behind even in urban areas, where it should be easy to upgrade.


9 posted on 09/24/2012 10:39:45 AM PDT by balch3
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To: RightCenter
It is more like the massive amount and wide diversity of taxes that are on your bill coupled with the hidden taxes paid at all levels that the companies that are required to pay to do business, including the highest corporate tax rate in the entire World.

Sure, competition doesn't work in the Telecom industry. It doesn't work anywhere! What a bunch of horse$hit! Of course France, Korea, and Japan are SOOO much larger in area than the continental nation of The USA.

If a company had an advantage by increasing thier speed, it would do so. An upstart company could start up in an undeserved market and through deals with the local government increase the infrastructure beet the competition and replicate it in other communities.

10 posted on 09/24/2012 10:45:56 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: RightCenter

A thing is worth only and exactly what another pays for it.


11 posted on 09/24/2012 10:48:11 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com)
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To: Buckeye McFrog
We used to have a very deregulated cable TV system. Then the Democrats regulated it. Doubled the prices overnight. Pure cable-only companies have only to charge less than the regulated cable tv providers to look good.

Deregulation at the federal level would undoubtedly bring down the price.

12 posted on 09/24/2012 10:52:41 AM PDT by muawiyah
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To: RightCenter
melissa theriau Pictures, Images and Photos

Yeah, and the French evening news is read by Melissa Theriau while we're stuck with a hagged out Diane Sawyer.

13 posted on 09/24/2012 10:53:58 AM PDT by Snickering Hound
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To: Durus

We get crap telecoms service because the market is rigged.

End of.


14 posted on 09/24/2012 10:56:30 AM PDT by Flash Bazbeaux
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To: Snickering Hound

That’s it, I’m moving to France.


15 posted on 09/24/2012 10:57:32 AM PDT by dfwgator (I'm voting for Ryan and that other guy.)
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To: Las Vegas Dave

TV related ping


16 posted on 09/24/2012 11:05:14 AM PDT by raybbr (People who still support Obama are either a Marxist or a moron.)
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To: Flash Bazbeaux

I used to live in a village in England where the main telecoms provider (BT) wouldn’t update the infrastructure from the 1980s (”not economically viable”) and we couldn’t get broadband at all. After six months of pressure they grudgingly installed a copper cable so a few of us could get dialup speeds.

Me and three other technically savvy residents got together and, on a shoestring budget, worked out we could build an infrastructure to give every subscriber 20mbit broadband... for $20 a month. And that would be enough to turn a profit in Year 2, despite borrowing the startup capital at market interest rates (something the major telecoms companies don’t have to do).

By the time I moved, our solution was in place and for about $40 a month per subscriber most were getting 60mbit down, 20mbit up. More than double what the people paying $80 a month to BT or Virgin (the two biggest wired telecoms companies) were even able to dream of.

And that covered the cost of the equipment and cables.

Do you know how much the major telecoms companies wanted to charge us to upgrade their kit to provide 8mbit broadband? £40,000 over 3 years. Guess how much they did the upgrade for AFTER we started poaching their customers with a service that made theirs look positively antique by comparison?

£0.00.

This is the story all over Britain. Big business is constantly waiting for subsidies. They’re DEMANDING subsidies. Even though over 1000 independent projects have proved they don’t need subsidies at all, they’re still holding the hand out.

If it’s possible for a band of amateurs to make a profit providing superfast broadband to a piss-ant village like ours, then the big telecoms companies who already owned half the infrastructure thanks to one of Margaret Thatcher’s public sector fire sales, DAMNED WELL could do it if they weren’t so ruddy lethargic. So time and time again they get spanked on their own turf by the little guys, and that’s when they panic, stop holding their hands out for more subsidies, and spend some of that money they already have sitting in a bank somewhere accruing interest.

Our government keeps giving these useless SOBs public money to get them to innovate. There’s no need. Time and time again the independents, the mom and pop shops, and community enterprises, have been able to prove they can deliver the same for a fraction of the cost.


17 posted on 09/24/2012 11:27:01 AM PDT by MalPearce
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To: RightCenter

in the report, did they share how much of other countries cosumer telecom costs are subsidized dirertly and indirectly by their governments

also, comparing service in tiny bulgaria with the u.s., on any basis is absurd; wiring tiny bulgaria vs wiring the vast u.s. is akin to wiring Manhattan vs wiring Montana - apples and oranges;

and lastly, who cares how fast people can download porn, and who says everyone needs and wants and just can’t survive without the Internet anyway? who cares? the business interests of the Internet that’s all, and for that they need to convince everyone that we just can’t live without them

just another populist scheme to bash “big companies” in favor of the Net Neutrality crowd’s free ride on the telecom backbone built and maintained by others


18 posted on 09/24/2012 11:45:11 AM PDT by Wuli
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To: RightCenter

“In his book, he tells of a woman who in 1984 paid $9.51 for her local phone service. He writes:

“By 2003 her bill had swollen fourfold to $38.90. In the two decades since the breakup of the AT&T monopoly, even after adjusting for inflation, [her] telephone cost $2.30 for each dollar paid in 1984. And that was without any charges for long-distance calls.””

Long distance callers used to cross-subsidize the basic local service. Today, long distance calls are cheap — free even. Back then, they were the largest part of the bill, for anyone living some distance from friends or family. Businesses paid a fortune for long distance. Big businesses, and governments negotiated a bulk rate, with the monopoly Telcos.

The simple fact is that telephone calling costs a tiny fraction of what it did 25 years or so ago. (To say nothing of the additional services, such as voice mail, that are included.)

BTW, anyone with high-speed Internet can get telephone service for virtually nothing today. Check out “Ooma” or “Magic Jack Plus”. They plug directly into your broadband router — no computer necessary. (Actually, they are black boxes, with a computer-on-a-chip, programmed to handle VOIP.)


19 posted on 09/24/2012 11:49:29 AM PDT by USFRIENDINVICTORIA
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To: Flash Bazbeaux

Define rigged.


20 posted on 09/24/2012 11:55:13 AM PDT by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Jim from C-Town
An upstart company could start up in an undeserved market and through deals with the local government increase the infrastructure beet the competition and replicate it in other communities.

If only.... Unfortunately, government at ALL levels is corrupt to it's core and is the main reason it can happen as you say.

One of governments main purposes today is to destroy true capitalism -- actively so.

If we have true capitalism what you say would already be happening across the Republic and aggressively push down prices.

However, government is against Liberty.

Government at the local level, starting with sadistic councils, have humans who want to feel important and assert power by always being negative to new businesses in general (that would impact country wide areas)

Existing companies use their political power to influence state and local government entities to throw up regulatory and licensing roadblocks (this is part of the crony capitalism Sarah railed against).

At the Federal level we have the highest corporate taxes in the world and an insulting amount of fees tacked on to services.

We are very, very far removed from anything resembling true free enterprise in this Republic. The evil parasite class at all levels of government are filled with sadistic bureaucrats who view us as enemies.

21 posted on 09/24/2012 12:17:45 PM PDT by sand88
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To: sand88

You are probably right!


22 posted on 09/24/2012 12:20:52 PM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: marsh2

True enough, but non-TV services like internet and phones are still too expensive for what we get in return (relative to other countries)


23 posted on 09/24/2012 3:43:31 PM PDT by RightCenter
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To: marsh2

True enough, but non-TV services like internet and phones are still too expensive for what we get in return (relative to other countries)


24 posted on 09/24/2012 3:43:39 PM PDT by RightCenter
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To: Wuli

this isn’t just about faster internet, though, but also better phone coverage and cheaper cable TV. and faster internet could help the growth of tech startups in places outside of silicon valley


25 posted on 09/24/2012 3:45:58 PM PDT by RightCenter
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To: marsh2

I see this repeated over and over again. When it does get to be enough that the cable company or telco notice, then they will take steps to “shape traffic” and make services and other site unusable. Already done today for bit-torrent, which is not always used for piracy. Distributed computing and distributed observations used bit-torrent to broadcast data. And lets not forget data caps...

Without a true net neutrality regulation, you will be held hostage, since most consumers have one true choice in broadband. Some have 2, where Fios and Cable searve the same markets, but that is a small portion. Where I live, its Comcast and Verizon DSL, which is limited to 1.5 Mbps down, 128kbps up due to distance from the CO.


26 posted on 09/24/2012 5:28:59 PM PDT by ace2u_in_MD (You missed something...)
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To: raybbr; ADemocratNoMore; advertising guy; aft_lizard; AJMaXx; Alice in Wonderland; ...
HDTV related pings..
27 posted on 09/25/2012 1:50:27 AM PDT by Las Vegas Dave (".....All 57 states (or is it 58?) must stand together and defeat O'bozo!.....")
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To: Snickering Hound

Does she read the news in French or English?

...not that it matters.....


28 posted on 09/25/2012 4:21:31 AM PDT by Loud Mime (arguetheconstitution.com)
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To: NCDave

This is a bogus site. They are “testing” using other providers than my own.


29 posted on 09/25/2012 5:58:32 AM PDT by Chickensoup (STOP The Great O-ppression)
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To: Jim from C-Town
If a company had an advantage by increasing thier speed, it would do so. An upstart company could start up in an undeserved market and through deals with the local government increase the infrastructure beet the competition and replicate it in other communities.

Ever heard of Franchise?

30 posted on 09/25/2012 9:14:33 AM PDT by itsahoot (I'll write in Palin in 2012. That is 1 vote for Palin, 0 votes for Romney and Zer0 votes for Obama.)
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To: E. Pluribus Unum
"The big-government/big-corporate criminal monopoly at work to steal from you."

Oh no you've got it all wrong. Big Gub'ment, Big Telcom and Big Media are out to make things wonderful for you.

Why now they've went and streamlined things so we save money. See if you are accused of illegal downloading this alliance of the Big 3 have eliminated a whole step. Now we don't need courts and the law we can go straight to punishment and you get your internet connection either "squelched" (slowed way down to where it is impossible to watch or download video on your connection) or your account closed and disconnected.

Granted if you are hacked and your account is used for illegal downloading (Any Jr. Highschooler with a couple of hackwares that are free on the internet can hack your wireless router in under 40 minutes and you would never know) its not really your fault BUT look at all the money these guys are saving by eliminating the legal step.

And Obama made this deal happen! Amesome shit eh?

31 posted on 09/25/2012 9:26:17 AM PDT by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: sand88
If only.... Unfortunately, government at ALL levels is corrupt to it's core and is the main reason it can happen as you say.
. . .
If we have true capitalism what you say would already be happening across the Republic and aggressively push down prices. . . .
Existing companies use their political power to influence state and local government entities to throw up regulatory and licensing roadblocks
. . .
We are very, very far removed from anything resembling true free enterprise in this Republic. . . .


Absolutely. And it's both parties!. It's been going on for a long time, and at this point they have well nigh killed the goose . . .
32 posted on 09/25/2012 10:04:28 AM PDT by khelus
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To: khelus
It's been going on for a long time, and at this point they have well nigh killed the goose . . .

Well, to them the goose is the golden campaign contribution from the big telcos, and they are just killing the fleas that are bothering it. :)

33 posted on 09/25/2012 5:00:17 PM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: Mr. Jeeves

ROFL


34 posted on 09/26/2012 10:41:36 AM PDT by khelus
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