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R Clark
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R Clark,
User Rank: Blogger
4/29/2019 | 9:27:19 PM
Re: A most dramatic price drop
It seems a classic case study of third into the market smashing a cosy duopoly.
Cloud 4G
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Cloud 4G,
User Rank: Light Beer
4/29/2019 | 7:33:56 PM
A most dramatic price drop
Thank for the well-timed article.

Less than two years ago the price level for broadband service in China, adjusted on a per capita income basis, was among the higher of emerging countries.  That stood out against the backdrop of the rocket-trajectory rise of the wireless telecoms, leading well into first place among the world's largest companies in terms of subscribers.  The drop in pricing would be unprecedented even if we were taking place in a small island country like Britain.  

The Chinese government's pressure for lower prices for broadband service undoubtedly helped. However, the growth in the Chinese market and cost efficiencies of the rapid succession of wireless deployments creates a maelstrom that has helped drive the prices down.  Some of that is the impact of scale which is at work around the globe.  It is the same fundamental factor at play in the ongoing debate at US DOJ whether to allow T-Mobile and Sprint to merge.


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