eli5 Why do internet providers and telecommunication companies have similar or identical prices for their packages? Wouldn’t slightly lowering the cost give the illusion of ‘same speed lower prices’ and improve their business?

Question

I understand that at some point operational costs come into play but wouldn’t they automatically quote a price much more or decently greater than it?

In: Other

Answer 1

There are other ways to get customers. For example, at my previous apartment, the complex had signed an exclusive contract with a smaller ISP, and that was my only choice for cable internet. When I moved to a different apartment, I was able to sign on to a different provider that was literally double the speed at half the price.