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

Most ISPs have a “monopoly” in a particular area with next to no competition (or any serious competition). A competitor with lower prices isn’t going to take away so much business that it becomes a threat. So the bigger company essentially sets the price and the others base theirs off of that.