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Finally, these two systems are competing on price. Cable Internet is reasonably priced. You can get a cable connection for $30 to $40 per month. Plus this price usually includes services such as email and newsgroup access. In addition the actual cable modem that is necessary in order to receive Internet service is usually either provided to the customer by the cable provider or is relatively inexpensive. DSL connection costs, on the other hand, range from $20 to $80 per month, but many times that doesn’t even include Internet access. Plus DSL modems are proprietary and usually pretty costly. (White)

One of the reasons that cable service costs less than DSL is because it’s a shared facility. A coaxial cable traveling in a neighborhood from house to house can provide high-speed service to thousands of customers. A single piece of equipment at the cable company’s office can patch those thousands of customers onto the Internet. DSL, on the other hand, requires a separate pair of wires for each subscriber. The company must install a special DSL modem for each phone line at its central office. (Garfinkel)

PC’s in homes wired for cable but also close enough for DSL have the option of choosing either service. However, it is most likely that the home market will decide to go with the cable modem since it is considerably cheaper. Businesses, on the other hand, that are interested in maximum speed, security, and guaranteed performance will probably choose DSL. The DSL market also invites more competition than does cable. This means that DSL prices in the future should drop. (White)

The bottom line here is that neither the telephone nor the cable industries are doing everything that they can to roll out their technology very quickly. This is due to the fact that they would be replacing a lot of the infrastructure that they’ve invested in over the years which is still working fine for carrying telephone or cable-TV signals. They also know that there is the potential of satellite-based Internet access waiting in the near future. (Broersma)

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