Smith6612 wrote:I suppose what we're dealing with are two different economies of scale. Both companies get their primary revenue sources from different places. For Google, it's primarily their advertising and data mining empire. For Verizon, it's whoever pays into the network (customers). .
Yes, it's all about competition and business goals. I'd also venture a guess that Google Fiber and FiOS do not exist in the same geography. If they do, I'd be interested to see what the price differential is and how that effects markets.
One thing that many people fail to realize is the price of a good or service has very little to do with it's cost. It's all about charging what the market will bear in order to make as much profit for the owners / shareholders as possible. Competition is what is supposed to regulate prices and it does in many markets. Broadband is "special" as it has very high entry costs and limited competition.
Anyway, the answers to the OP's question are deep and complex and might be better suited to an MBA paper.
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