Increased Competition Leads to Lower Prices

billboard road sign with text "competitve advantage straight ahead"

According to an article on FierceTelecom.com and Consumerist, consumers in the United States are experiencing the benefit of greater competition between service providers, as AT&T continues to lower the price of it’s 1 Gbps GigaPower service, particularly in markets where it Google Fiber has an established presence.

The increased competition between AT&T and Google Fiber is also leading to increased service availability, as AT&T continues to roll out service to new markets and pursue an ambitious goal to bring 1 Gbps FTTH service to an additional 11.7 million locations by extending fibre from its existing fibre-to-the-node (FTTN) network that it build out to deliver IP broadband service to 57 million US locations.

However, as Consumerist notes, AT&T still charges $40 more for its 1 Gbps service in areas where it doesn’t face competition from Google Fiber, meaning prices and service levels vary widely depending on the particular market.

We couldn’t agree more with Chris Morgan (Consumerist) when he states:

The fact that AT&T believes it can charge $40/month more just because no one else in a market is offering a comparable service only underscores the need for increased competition in high-speed broadband service. When more companies are selling comparable services, no single operator can dictate what consumers should pay.

That’s why the Western Ontario Wardens’ Caucus believes SWIFT is the necessary game changer that will lead the way for better access, better service, and better prices for consumers in Western Ontario. Leveraging an open access model for all providers and users with publicly published rates will create ongoing competition and full transparency, which in turn will generate more selection, better services, more choices and lower prices. We believe that SWIFT is a critical infrastructure investment for our communities – and if you agree, make sure you ask candidates running in your riding about their support for SWIFT and what they will do to move this important project forward after the October 19th federal election.