Earlier today,
the New York Times' Bits Blog reported that starting next month, New York-based cable provider
Cablevision will offer 101Mbps (downstream) service to the 5 million people in its service area at a cost of $99.99 per month. While $100 per month for Internet service is not quite what most of us would consider a
deal, Cablevision's latest service offering--which will be the fastest Internet service available to consumers in the United States--looks a lot more affordable when juxtaposed with comparable services. Both Verizon and Comcast currently charge $140/month for 50Mbps downstream service (Verizon charges less in a few highly competitive markets), which means that with Cablevision, you're getting more than double the downstream bandwidth for around 70% of the price. Sure, a cost to speed ratio of $0.99 per megabit might not seem like a great value
when compared to speeds and prices overseas but for the U.S., Cablevision's announcement represents a big step forward for the affordability of high-speed broadband. How can Cablevision afford to offer such fast service at such a relatively low price?