Why is DSL Internet so expensive in Alaska? (Fairbanks, Prudhoe Bay: home, tax)

[YellowstoneDate]

When I was working in Alaska I had DSL Internet. Now that I am back in the lower 48 states. Having Time Warner Communications It's only $88 per month. 70 cable network channels, Cable Modem Wi-Fi System and a Cable Modem Phone System. Why is Alaska DSL so expensive?

[dcbrewmeister]

Lower 48 = landline based
Alaska = wireless based

guess which is more expensive...

Communication from lower 48 to AK is over airwaves... not copper.

[flyonpa]

There are major Fiber lines that goes from Lower 48 to Alaska.

(But i would also think the cost of running all the fiber network would have to be included in the price of service)

[dcbrewmeister]

Originally Posted by flyonpa

There are major Fiber lines that goes from Lower 48 to Alaska.

(But i would also think the cost of running all the fiber network would have to be included in the price of service)

Doesn't it continue to places like Anc and further north through the radio towers in the inside passage? Or has that changed?

You also have to consider the customer base... larger cities can have 1,000,000+ residents... Alaska has ~600,000 total...

Spreads the cost out. But look at the cost of DSL in a city compared to satellite internet access for more rural areas...

[flyonpa]

Alaska United - Home

Fiber goes up to Fairbanks and also follow the pipeline up to Prudhoe Bay.

[R_Cowgirl]

Yellowstone - Not all the lower 48 is as cheap as your sector of the country. I don't have that cost in Phoenix. (You'd think so in a valley of 4.2 million people!) I have Cox Communications telephone (with voice mail, unlimited long distance, Canada long distance); cable modem - 50 mbps; and HD TV with no extras. Costs me $189/month. I'm switching my landline to Ting.com, canceling my TV and only keeping the internet. That will still run me $64 for the internet. But phone will drop to $23. I'll watch my shows online and don't need the extra nonsense of their crappy TV shows.

[akck]

Our cable modem costs us $60/month, but it's part of a package so it's hard to determine what the stand-alone cost would be. Probably something north of the $60 on the bill. 15Mbps/1Mbps speeds.

[GnomadAK]

Originally Posted by dcbrewmeister

Lower 48 = landline based
Alaska = wireless based

guess which is more expensive...

Communication from lower 48 to AK is over airwaves... not copper.

Alaska is well supplied by both copper and fiber. There have been undersea cables to Alaska since the 1920's.

The answer is, as with most questions that begin with "why does it cost more in Alaska" , because it can. It's the Alaska tax.

[Dakster]

There are many factors for prices of service, population is one in the market dynamic of pricing. Besides a low population and population density in AK, I bet it also has to do with how far the copper, fiber, wireless, etc.... has to go. Also, competition or lack thereof is another...

I have multiple choices for internet and cable (ATT and Xfinity) where I currently am at. Wireless home internet/phone is almost here too. Still doesn't make it cheap, but at least it keeps some of the prices in check and you have several choices. My friends and family in and around Phoenix say that there are still pockets where internet isn't all that great or cheap - and I have no explanation as to why that has to be in an area with 4.2 million people, so other market factors are at play.

Also FWIW, DSL is being phased out down here, friends with DSL have been getting notices that DSL will no longer be able in a couple of months.

Gnomad is on the money, why does it cost so much? Because enough people are willing to pay it. (because they can)

[RayinAK]

Well, in Alaska it's both wireless and wired internet service. The wired ones can be cable DSL, or landline DSL, but what sets the cost is the speed you want. The basic cost for a slow wired DSL service from ACS or GCI (cable) is around $48.00 plus tax a month. This is still quite expensive compared to the same service in the lower-48, and the reason may be because GCI and ACS pretty much have a stronghold on that portion of market. However, AT&T plus other companies have introduced competition to the local companies and often offer reduced prices. But as long as the market (customers) are willing to pay the price, all the companies involved will just maintain relatively equal prices for services. They may give a little discounts here and there to attract certain customers, but one has to shop around. What I do is to call the company on the telephone every six months or so, and ask for a discount. These discounts are offered when the companies change service plans, but don't tell you about it if you have been a customer of theirs. They just change plans to attract new customers.