“The natural model when you have a simple duopoly capturing the majority of the market is segmentation: maximize ARPU [average revenue per user] by artificially limiting service in order to drive additional monthly spending. But fundamentally this is the wrong model for a service provider like us, and we have looked to Europe for inspiration… I believe that removing the artificial limits on speed, and including home phone with the product are both very exciting.”
So says Dane Jasper, Sonic.net’s CEO. American ISPs have convinced us that Internet access is expensive—getting speeds of 100Mbps will set most people back by more than $100 a month, assuming the service is even available. In Chicago, Comcast’s 105Mbps service goes for a whopping $199.95 (“premium installation” and cable modem not included). Which is why it was so refreshing to see the scrappy California ISP Sonic.net this week roll out its new 1Gbps, fiber-to-the-home service… for $69.99 a month. The price includes home phone service.
Aevia — Consider the Source