Observers of U.S. internet access markets often argue that prices have increased over the past two decades. That argument typically refers to prices that are not inflation adjusted, not adjusted for the different tiers of service customers buy, and virtually always refer to price trends for fixed access.
Everyone agrees on only one thing: prices per bit on fixed networks have continually dropped.
The new wrinkle is what has been happening on mobile networks, especially as it now appears certain 5G will usher in a new use of mobile platforms to challenge fixed network service directly.
T-Mobile US executives, for example, note that, if “you go back to 2013, our customers have enjoyed a 12-fold increase in the data that they can use with about an 11 percent decline in price, says Mike Sievert, T-Mobile US COO.
MetroPCS customers (a T-Mobile US prepaid brand) have seen prices between 17 percent and 25 percent lower, Sievert says.
T-Mobile US now says it expects to be a significant player in providing major new competition for internet access services provided by fixed network providers as well, if its merger with Sprint is approved. In truth, T-Mobile US is likely to do so even if the merger with Sprint is not approved.
That assault obviously will include a “lower price” attack. Referring to a planned assault on fixed network internet access markets, “we think about 10 million will choose us over the first few years, because we'll be offering a better price broadband offering,” said Sievert.
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