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Billing wireless: Price drops when competition heats up

Thursday, November 19th, 2009

As broadband adoption spreads throughout the U.S., competition between telecoms continues to escalate. The effect of this is to create a sharp drop in prices, and in turn, create further incentives for new customers to sign up for broadband and mobile broadband services.

Marguerite Reardon, writing for CNET, says that Verizon DSL is offering six free months of internet access in return for a one-year commitment in some areas of the country. The company is also offering several incentives for consumers to sign up for its new FIOS fiber-optic service, which provides super-high bandwidth internet and HDTV access.

However, Reardon points out, such deals are rarely available to customers in areas with just one broadband provider, such as most of rural America and some smaller urban areas. Even the major wireless networks have significant gaps in coverage, according to industry analysts.

Wireless companies have invested tens of millions of dollars in expanding their capacity, but some say that the growth in wireless data use could swallow up even the most optimistic build-out projections.ADNFCR-2628-ID-19469739-ADNFCR

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