Cutting a Broadband Swath for Cheaper Access

Consumers have been slow to purchase pricey high-speed Internet access, clinging to their inexpensive yet sluggish dial-up connections. But after years of keeping prices high, an increasing number of high-speed providers are considering new pricing models that would make broadband access cheaper.

Instead of charging a monthly rate for the fastest speed, broadband providers are considering multitiered pricing models that base price on connection speed. The faster connection, of course, will cost more.

The change is largely due to saturation in the dial-up market, which grew less than 1% in 2001, according to Dave Burstein, editor of DSL Prime, a Web site covering the broadband industry.

Indeed, dial-up saturation forces companies seeking growth opportunities to convert existing users into new broadband customers by attracting them with lower price points. ...