Price elasticity of broadband
Stephen B. Pociask of the American Consumer Institute finds that broadband services are very price sensitive.
just a $5 increase in price could lead to a 15% drop in total broadband subscribership and a 60% decline in demand for lower-income, price sensitive consumers.
The study can be found here.
Price increases are likely to occur as a result of network neutrality regulation, according to Pociask. It which would preclude network providers from experimenting with different pricing or service models, forcing consumers to bear the entire cost of network upgrades.
