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To: GST who wrote (136904)	1/13/2002 2:04:15 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164685

The oversupply has caused prices for high-speed Internet connections to plummet nearly two-thirds in three years. In theory that should be good for customers. But in fact, it has put fiber networks further out of reach by making it harder for telecom companies to earn back the cost of a last-mile connection. Now they are raising prices, particularly for business, to make providing broadband a viable business model. If in fact the end user is paying more for broadband, then is the price truly plummeting? My cost at my business site in Erie for the same broadband has almost doubled the last year. The reason given by all providers is the prior rate was not profitable. I either had to go back to dial-up or poney up more per month. I chose the later. I assume I am not the only firm in the US with that pricing problem. I do not see that occurring for residential users as of yet but residential penetration is not nearly as high as business penetration.