Rogers “Extreme” Price Increase

24 Jul ’06

Rogers is increasing the price for its “Extreme” service by $7 a month, to $51.95 (for 6 mbps down and 800 kbps up; 100 GB transfer limit). The explanation sent to customers is that prices have not increased since the service’s introduction in 2004, and “operational costs have increased”. It’s a curious thing, but once upon a time the broadband providers in Toronto competed for their customers by leapfrogging over each other’s maximum speeds, with prices staying essentially the same for progressively faster speeds. But the offerings haven’t changed since 2004, as far as I can recall. And now it looks like we will face price increases. This, of course, because of the sad state of competition here.

Competition for service is still the rule in Quebec, of course, but only because Videotron is in that market to make it more competitive ($44.95 for 10 mbps and 900 kbps up; unlimited transfer). And even in the U.S., where broadband providers have been much maligned for their efforts to subvert net neutrality, a policy concern because of the absence of competition in most metropolitan areas, Verizon is busily rolling out its FIOS service ($44.95 for 15 mbps down and 2 mbps up, theoretically; new installs get a free wireless router).

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